Banks say consumer data right ‘action initiation’ rescue will cost $3b

The banking sector will have to wear between $2.5 billion and $3.5 billion in costs to extend the consumer data right and improve its utility as a switching tool for consumers, according to the Australian Banking Association, which is lobbying to delay the legislation.

These costs would be on top of $1.5 billion banks have already spent on the first phase of open banking – the first industry application of the right – which banks say is only used by 0.3 per cent of customers.