What question did this study set out to answer?

The central aim is to evaluate if the U.S. should adopt Australia’s Consumer Data Right for open banking.

March 6, 2026Laws0 citationsOpen Access

Transplanting Australia’s Consumer Data Right: A Viable U.S. Open Banking Model?

RORory O’CallaghanBond University CWCasey G. WattersBond University

Key Points

The central aim is to evaluate if the U.S. should adopt Australia’s Consumer Data Right for open banking.
Comparative analysis of Australian and U.S. regulatory systems.
Focus on non-bank lenders and their role in open banking.
Analysis of challenges related to legal transplantation.
Australia’s model promotes consumer empowerment through a rights-based approach.
Rigid structures and high costs may limit U.S. participation in open banking.
A hybrid model is recommended for better adaptability in the U.S. context.

Abstract

Open Banking aims to empower consumers to control their financial data, yet jurisdictions vary in their regulatory approaches. This article examines whether the US should adopt Australia’s statutory Consumer Data Right (CDR) as part of a domestic open banking framework, as open banking is yet to be fully realized under Section 1033 of the Dodd-Frank Act. This study employs a comparative analysis of the economic and institutional differences between the Australian and US systems, with a focus on non-bank lenders and the challenges of legal transplantation. It argues that although Australia’s rights-based model provides a normative foundation for consumer empowerment, its rigid structure and expensive accreditation processes risk limiting participation and innovation. Instead, the paper advocates a hybrid approach for the US, integrating CDR principles into a market-responsive framework.

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