New Zealand has agreed to establish a consumer data right framework for New Zealand, Commerce and Consumer Affairs Minister David Clark announced on Tuesday, July 6.
“Consumers should be in the driver’s seat when it comes to how their personal information is used by third parties,” David Clark said.
A consumer data right (CDR) is a mechanism that requires data holders, such as banks and electricity retailers, to safely and securely share data with third parties (like fintech companies) following consent from the customer. This means New Zealanders gain access to a wider range of products and services that better meet their needs.
“Any data shared through the consumer data right will only take place with a person’s informed consent, and would be strictly used for the reasons agreed upon. For example, if a person was seeking financial advice, they could ask their bank to share data, such as transaction information, with their chosen adviser,” David Clark said.
“The businesses and services wishing to receive this data would also have to meet a number of safeguards to ensure the information could be handled safely and securely.
“It’s also my intention that the consumer data right will work hand-in-hand with the Digital Identity Trust Framework announced earlier this year. It’s that piece of work which sets out the rules for the delivery of digital identity services,” David Clark said.
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