On 09 September 2021, Zepto became Australia’s 16th Accredited Data Recipient [ADR] under the ACCC’s Consumer Data Right [CDR], and the first non-bank payments provider to have achieved this accreditation–a huge accomplishment.
Australia’s CDR has been set up by the Australian Government to benefit the public and the economy. In his foreword to the Final report into Future Directions for the Consumer Data Right, Scott Farrell writes, “By making data work for them, the future CDR should reduce the time consumers take on their ‘life admin’ so they can spend more time on what they enjoy and what really matters.”
Sharing consumer data can be like swimming at the beach – it can be enjoyable and healthy, but it also can be unpredictable and dangerous, particularly for those not aware of the hazards. The CDR represents the flags showing where it is safer for consumers to swim, where information and warnings can be found and where the CDR regulators are on duty. Just as beach safety is designed to allow everyone who chooses to swim to enjoy the water and waves, the CDR design needs to recognise that all consumers who choose to share their data should enjoy the benefits, whether they are digitally-literate or not. This report recommends where, and how, these CDR ‘flags’ should be placed in the future.
Scott Farrell
There are two types of providers in the Consumer Data Right system:
- Accredited Data Recipients [ADRs] and;
- Accredited Data Holders
ADRs are the ‘receivers’ in the Consumer Data Right system–the entities that receive a consumer’s data after the consumer has provided their consent. The ADRs can then use the data for the purpose of the consumer’s request, like conducting a financial product comparison through an app, for example.
Accredited Data Holders are businesses that hold consumer data and must transfer the data to an accredited data recipient at the consumer’s request.
The accreditation process is led by the Treasury, working closely with the Australian Competition and Consumer Commission (ACCC) and the Office of the Australian Information Commissioner (OAIC).
Describing the accreditation, Zepto CEO Chris Jewell said, “To be recognised by the ACCC as an unrestricted Accredited Data Recipient within the Open Banking framework, is a massive milestone and incredible achievement. The compliance and governance threshold required to achieve this status is incredibly high and for good reason. As an ADR, the government has approved Zepto as one of a limited group of companies who can use consumer’s data (with their explicit consent) through the open banking APIs to deliver more choice in their products and services, more convenience in managing their lives, and more confidence using their data.”
To be recognised by the ACCC as an unrestricted Accredited Data Recipient within the Open Banking framework, is a massive milestone and incredible achievement.
Zepto CEO, Chris Jewell
The ADR accreditation demonstrates Zepto’s incredibly high standards of operation, information security, conformance testing, and governance through its ADR achievement.
It’s timely, too, coming swiftly in the wake of the rebrand from Split Payments to Zepto — a new identity that represents a moment of maturity for the business, and will guide it on its mission to level the paying field.
“To go through the rigorous process, through a framework that is backed and built by the government, and meet those exacting standards is an incredible validation for Zepto. It reaffirms where we are currently positioned, and the lens through which we have and continue to formulate what we consider to be the appropriate organisation wide governance, risk and control frameworks. It also frames our ambition to be recognised as a FinTech of global significance,” says Zepto’s Chief Operating Officer, Matthew Zaina.
Launched in Australia’s banking sector, and commonly referred to as ‘Open Banking’, CDR is an economy-wide reform that will roll out across other key sectors including energy and telecommunications.
Although Open Banking policy is still evolving and we have only just scratched the surface of unlocking its true potential, Zepto is incredibly well positioned to innovate in this space. Zepto's role in this space will be significant and having the accreditation to innovate and lead the product agenda for payments is incredibly exciting. Overall we can’t begin to imagine the value for consumers and merchants in the future economy with open banking at its core.
Chris Jewell
We are in awe of the Zepto team who delivered our submission over the course of some six months.
With the exception of the information security audit that was completed by RSM Australia, Zepto’s application was led and managed internally. It is something we’re rightly proud of, and speaks volumes about the calibre of the people in our business.