Michael Mack, CEO of BankWAW, recently joined a delegation of 39 representatives from 25 customer-owned banks at Parliament House in Canberra to represent the voice of their customers and assert their leadership role in a landscape often dominated by the big four banks. The visit provided a crucial opportunity for industry leaders to engage directly with senior officials, including Treasurer Jim Chalmers MP, Assistant Treasurer Stephen Jones MP, and other Members of Parliament.

Michael Mack appreciated the reception from policymakers: “It’s great to be welcomed by our political representatives and hear their appreciation for the role of customer-owned banks in delivering financial services across Australia and adding much-needed competition,” Michael noted.

A key focus of the meetings was to discuss regional banking reviews, maintain targeted regulation, and engage leaders on the opportunities and challenges related to the Consumer Data Right (CDR)—a regulatory framework introduced in 2018. The CDR aims to enhance consumer choice, spur innovation, and boost competition by mandating data sharing between financial institutions—an approach supported by the customer-owned banking sector.

However, six years into its implementation, consumer adoption rates remain low, innovation has been limited, and the cost burden is disproportionately felt by smaller regional and customer-owned banks. The estimated total cost of the first phase of CDR to the customer-owned banking sector has exceeded $100 million over the past six years, with benefits yet to be fully realised.

“Of course, we support the CDR’s ambition to put customers first and improve competition, as that is core to customer-owned banking. But it’s crucial for the government to understand that Open Banking already represents significant expenditure for competitors to the major banks—funds that would otherwise be invested into products, services, and community initiatives,” Michael said.

The dialogue at Parliament House highlighted a shared understanding between policymakers and the banking sector on the need for a balanced approach to further development of the Open Banking regime. Both major parties and many cross-bench representatives have shown a willingness to adjust the CDR framework to alleviate the disproportionate impact on smaller banks.

Michael Mack expressed optimism about the path forward: “We look forward to providing more input into a policy process that ultimately benefits consumers. Our customers want us to balance suitable financial products, excellent service, and necessary investments in technology. We look forward to helping create a regulatory framework that recognises these goals.”

This discussion marks an important step in aligning regulatory practices with the needs of customer-owned banks, their customers, and the wider Australian community. As the industry navigates these challenges, collaboration between banking leaders and policymakers will be key to fostering a competitive and innovative financial sector for all Australians.