A major change to online banking in New Zealand is coming into force on May 26, 2023. The change requires all banks to adopt a new standard for online banking called Consumer Data Right (CDR), which gives customers greater control over their data and allows them to share it securely with trusted third-party service providers. It will also include the ability to do same day payment between banks, weekends and public holidays included.
The CDR standard will enable customers to securely share their banking data such as account balances, transaction history, and product information with other financial institutions, fintechs, and other service providers. This is expected to increase competition in the financial services industry and provide customers with more personalized and innovative financial products and services. The article notes that the adoption of CDR will also require banks to invest in new technology and infrastructure to ensure the security and privacy of customer data.
This new standard is expected to benefit cryptocurrency investors and the wider financial services industry, as it allows customers to share their banking data securely with trusted third-party service providers. With the adoption of CDR, customers will have greater control over their data and be able to share it securely with other financial institutions, fintechs, and other service providers. This will enable them to access more personalized and innovative financial products and services, including those related to cryptocurrency investments.
One of the main benefits of CDR for cryptocurrency investors is the ability to securely share their banking data with cryptocurrency exchanges and trading platforms. This will enable them to seamlessly transfer funds between their bank accounts and cryptocurrency wallets, and access real-time data on their cryptocurrency investments.
In addition, the adoption of CDR is expected to increase competition in the financial services industry, leading to better pricing and more innovative products and services. This is likely to benefit cryptocurrency investors by providing them with more options and better access to liquidity.
Moreover, CDR will require banks to invest in new technology and infrastructure to ensure the security and privacy of customer data. This will result in stronger cybersecurity measures and greater protection for customer data, which is particularly important for cryptocurrency investors who need to ensure the security of their digitalassets.
It is important to note that the adoption of CDR is not without its challenges. Banks will need to ensure that they comply with the new standard, which will require significant investment in technology and infrastructure. Additionally, there may be concerns around data privacy and security, as customers are sharing their data with third-party service providers.
However, overall, the adoption of CDR is a positive step for the financial services industry and for cryptocurrency investors. It will provide customers with greater control over their data, increase competition in the industry, and enable access to more personalized and innovative financial products and services. As the adoption of CDR becomes more widespread, it is likely that we will see more seamless integration of traditional banking services with cryptocurrency investments, providing a more holistic approach to managing personal finances.