The final phase of the introduction of the Consumer Data Right in the banking sector will be implemented this week, when non-major ADIs start sharing their phase 3 customer data.

Phase 3 customer data obligations cover personal and business overdrafts, business finance, investment loans, lines of credit, asset finance, cash management accounts, farm management accounts, pensioner deeming accounts, retirement savings accounts, trust accounts, foreign currency accounts and consumer leases.

Most ADIs are up and running on the system, although a number are still working to fill gaps in their data sharing capability.

According to the Australian Competition and Consumer Commission, only Auswide Bank, BNK Banking Corporation, Cairns Penny Savings and Loans, PayPal Australia and Warwick Credit Union are inactive on the CDR Register (as of December 17).

However, there are a large number with “implementation gaps”, including all the big banks.

There are 25 accredited data recipients, not all of them active.

There are changes ahead for CDR and open banking. In December, the government announced that it will extend the functionality of the system by introducing consumer-directed third-party action initiation, which will enable payment initiation in open banking.

The addition of action initiation to the CDR was the key recommendation of the Inquiry into Future Directions for the Consumer Data Right, which reported in October. It has also been at the top of the wish list of industry participants in CDR.

Action initiation through the CDR allows a consumer to consent to an accredited data recipient initiating actions beyond requests for data sharing. This could involve third parties switching products or making payments on a consumer’s behalf.

And last week, the government said it would extend to cover more financial products. “Open finance” will cover general insurance, superannuation, merchant acquiring and non-bank lending services.

The government said it would start consultation on open finance shortly.