Stryd

At the start of March, retiring Minister Stephen Jones confirmed the timing for Australia’s Consumer Data Right (CDR) to roll out to the non-bank lending sector.

He announced an initial compliance deadline of 13 July 2026 for product data to be shared by large non-bank lenders, followed by consumer data from 9 November 2026.

In delivering the news, the Minister said expanding the CDR regime to non-bank lending will deliver a better deal for more Australians and promote “greater competition and innovation in the market.”

“By unlocking the value of a consumer’s data, the CDR has the potential to be a transformational piece of economic reform for Australian consumers, delivering more choice and access to the best possible deals on a range of financial products tailored to a consumer’s individual need,” the Minister said.

Stryd is looking forward to accessing more product data to fuel our flagship Stryd Product Repository with real-time information about home loans.

We also welcome the expansion of open banking into open finance more broadly, as Australia moves towards an open, data-driven consumer lending market.

Mortgage lending stands out as CDR's most valuable use case

According to industry data, non-bank lenders represent about 10% of the total Australian consumer credit market, serving some two million Australians with products such as car loans, BNPL accounts and mortgages.

Non-bank lenders are a significant part of the residential home loan market where their market share has more than doubled in recent years, jumping from 5% to 11% (according to ABS data).

Their market share is even higher in commercial real estate lending at an estimated 16%.

With APRA monitoring the lending criteria of banks, non-bank lenders have an advantage in being exempt from prudential regulation guidelines, while remaining compliant with national consumer credit regulations.

This advantage may explain the increase in market share, as non-bank lenders are able to offer faster turnaround times and access to credit for borrowers who may not be approved by a bank. For example:

Self-employed persons

Non-residents

Borrowers with low credit scores or thin files.

The benefit of switching home loans

The ACCC has shown that switching home loans can save borrowers thousands of dollars in interest over the lifetime of their mortgage.

Factors that hold borrowers back from switching include a lack of clear and transparent pricing, as well as inconvenience and time costs.

Regulated data-sharing via CDR can remove these barriers and boost consumer choice, convenience and confidence.

Bringing non-bank lenders’ data into CDR will make it easier for consumers to fill out a mortgage application with all the necessary information about their current indebtedness from both bank and non-bank lenders.

Secure data-sharing removes the need for information to be handed over in hard copy or emailed as a PDF attachment. CDR can also replace the controversial practice of “screen scraping” which requires the borrower to disclose login credentials including username and password information.

With open finance, consumers can consent to their data being shared securely via API.

Lenders also stand to benefit, through streamlining home loan application processes as well as increasing automation to manage back book risks.

With CDR data being shared in a standardised format, an added benefit is that it is easier for algorithms to generate insights aligned to responsible lending obligations.

Maximising open data benefits through early adoption

While the new data-sharing mandate is a compliance obligation, it also presents a strategic opportunity for non-bank lenders.

Early adopters benefit greatly, particularly with Product Reference Data (PRD), which is our specialty here at Stryd.

In fact, we’ve written on this topic in our blog titled “Boosting the non-bank lender toolkit – How Product Reference Data creates competitive advantage.”

By proactively sharing PRD – ahead of the mandatory schedule – non-bank lenders can enhance their visibility in the broker distribution channel by being included in the Stryd Product Repository, thereby expanding their serviceable market.

Additionally, consuming PRD via a fintech platform like Stryd enables non-bank lenders to monitor their market competitiveness far more efficiently, by reducing the need for manual data collection methods. We do all the heavy lifting for you!

Our blog also highlights that PRD is structured according to data standards designed to facilitate like-for-like product comparisons, stimulating innovation and competition within the financial sector.

Non-bank lenders who adapt quickly can achieve an advantage in the home loan product category and build trust with brokers by sharing accurate product data in the right way.

Lenders who are not mandated to share data may choose to opt into the CDR framework. Voluntary participation can enhance competitiveness by distributing product information more widely and offering customers greater data portability and transparency.

Compliance obligation or competitive opportunity?

Non-bank lenders who are designated as Data Holders now face new compliance obligations and infrastructure challenges. As mentioned above, there are also more competitive opportunities.

Recipients of CDR data – such as mortgage brokers using the Trusted Adviser pathway - will be able to access richer and more diverse consumer financial data, to build more accurate financial profiles of borrowers and deliver tailored product recommendations.

In turn, brokers can enhance the efficiency and effectiveness of their services, to help more Australian borrowers get a better deal on their home loans.

With the ongoing challenges of housing affordability plus the cost-of-living, expanding CDR to non-bank lenders benefits Australians at a time when they need it most.

We're excited for what’s to come! 

To learn how Stryd works, you can get in touch with us by email at sales@stryd.au or set up a convenient time for a demo here.

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