Adatree, one of Australia’s leading Open Banking fintechs, has become the first such company to be designated as a ‘principal’ under the Consumer Data Right (CDR) legislation enacted last year.
Its new status will allow it to act on behalf of other companies and access data for them without them having to go through the CDR accreditation process themselves – in essence, allowing Adatree to be compliant on their behalf and thus smooth the process by which companies align with data sharing.
It is perhaps the first iteration of CDR-as-a-service, paving the way for smaller ADIs and lenders to integrate their systems with the new way of working in the industry.
The move is a vital step in growing Australia’s Open Banking ecosystem, as one of the major hurdles facing institutions is the prohibitive cost of compliance with regulation and the prolonged amount of time that it can take for a company to become compliant.
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On receiving ‘principal’ status, Adatree announced a partnership with broker analytics firm Sherlok to become its CDR representative and allow its broker customers to gain faster, easier access to consumer data from across a range of ADIs.
“We’re thrilled to collaborate with Sherlok to become the first Australian company to bring this new regulatory access model to life,” said Jill Berry, CEO and co-founder of Adatree.
“The process to participate in the Consumer Data Right is very lengthy and complex, with security and regulation at the heart of it.
“Hundreds of companies are registered as interested in becoming data recipients, but are yet to start the process.
“Adatree is leading the way by making it easier for businesses to overcome the high barriers to entry when it comes to CDR and achieve their goals much faster.
“They get the benefits of the CDR by working with Adatree, so we do the heavy lifting for them.”
