Transplanting Australia’s Consumer Data Right: A viable U.S. Open Banking model?

Open Banking aims to empower consumers to control their financial data, yet jurisdictions vary in their regulatory approaches. This article examines whether the US should adopt Australia’s statutory Consumer Data Right (CDR) as part of a domestic open banking framework, as open banking is yet to be fully realized under Section 1033 of the Dodd-Frank Act. This study employs a comparative analysis of the economic and institutional differences between the Australian and US systems, with a focus on non-bank lenders and the challenges of legal transplantation. It argues that although Australia’s rights-based model provides a normative foundation for consumer empowerment, its rigid structure and expensive accreditation processes risk limiting participation and innovation. Instead, the paper advocates a hybrid approach for the US, integrating CDR principles into a market-responsive framework.