New CDR rules give power back to the people, as well as fintech lenders

News.com.au

01-05-2025

CDR flips the power back to the people
Non-banks get their shot from 2026
Fintechs gear up for a fairer fight
Back in 2019, Australian lawmakers kicked off something called the Consumer Data Right, or CDR.
The idea was to give everyday Aussies the power to take back control of their personal financial data.
Instead of banks and big institutions hoarding all the information, the CDR means people can choose to share them safely with trusted providers to get a better deal – whether that's on loans, power bills, or other services.
It officially launched in mid-2020, starting with the big four banks. Since then, it's been rolled out to more financial players and even other industries.
For consumers, the CDR has literally changed the game.
If you're chasing a loan, for instance, you can now share your bank data directly with a lender who's signed up to the CDR framework.
It means you can tell your bank, "Oi, send my data to this lender I actually want to deal with.'
This allows those lenders to see your real financial habits, not just a credit score or a payslip. They can then make sharper decisions, and you could potentially score a better deal.
And because the information is real-time and accurate, lenders can make quicker decisions, and the chance of defaults is lower, making everything run smoother for both sides.
CDR to be expanded to non-bank lenders
Now, the Australian Government is taking things even further.
In a move announced last month, they've committed to expanding the CDR to non-bank lenders by mid-2026, opening up a whole new world of options for consumers.
This is part of a much bigger plan to 'reset' the CDR and give Aussies more control.
Stephen Jones, the Assistant Treasurer and Minister for Financial Services, said that 'uplifting' the CDR will 'deliver a better deal for more Australians.'
The idea is to make sure that not only the banks, but also credit unions, fintech lenders, and buy-now-pay-later (BNPL) services, all get a piece of the action.
By mid-2026, the CDR will include non-bank lending products like personal loans, car loans and even reverse mortgages.
Tap straight into customers' data
This will bode well for fintech lenders on the ASX.
This includes companies like Plenti Group (ASX:PLT), which has surged in 2025 with record loan growth in Q4 and booming cash profit.
Then there's Wisr (ASX:WZR), which is eyeing a 90% loan surge as AI powers 80% of its loan processing.
MoneyMe, meanwhile, has powered past $1.5bn in its loan book, with originations up 65% and strong credit shaping a leaner, smarter portfolio.
But these fintechs don't currently have the same access to real-time financial data that banks do, and that's where the expanded CDR comes in.
Come mid-2026, the CDR will let MoneyMe and these other non-bank lenders tap straight into the financial data of consumers, data that until now has mostly been kept behind the walls of big banks.
They can then potentially make faster, more accurate decisions about who qualifies for loans and under what terms.
More muscle to compete
But it's more than about speed. The CDR also opens the door to personalising loan products even more.
For example, with MoneyMe now developing new credit card products, access to richer data through the CDR framework could be a game-changer.
MoneyMe could look at a customer's actual spending habits, income trends, and even their history with other types of loans.
And take car loans, for example.
MoneyMe's got its own vehicle finance product called Autopay, while Plenti runs a white-label program called NAB powered by Plenti (NPBP).
With the expanded CDR, these lenders could plug straight into a customer's real-time banking data.
Armed with this kind of information, they could potentially design products that are better suited to each individual's lifestyle.
This move also means that fintechs like MoneyMe will have more muscle to compete with the traditional banks.
With CDR's expansion, everyone could well be playing on a more even field.