The government will establish a consumer data right framework for New Zealand, commerce and consumer affairs minister David Clark announced today.
A consumer data right is a mechanism that requires data holders, such as banks and electricity retailers, to safely and securely share data with third parties (such as fintech companies) following consent from the customer.
It would allow New Zealanders to gain access to a wider range of products and services that better met their needs.
“Consumers should be in the driver’s seat when it comes to how their personal information is used by third parties,” Clark said.
The announcement is part of a slew of digital developments out of Wellington, including planned legislation announced in May to set rules for the delivery of digital identity services called a "digital identity trust framework".
The government is also evaluating an algorithm charter and a new digital ombudsman role to increase trust as technology becomes the major channel for citizen interaction and decision-making.
“Any data shared through the consumer data right will only take place with a person’s informed consent, and would be strictly used for the reasons agreed upon," Carter said.
"For example, if a person was seeking financial advice, they could ask their bank to share data, such as transaction information, with their chosen adviser.”
Businesses and services wishing to receive such data would have to meet a number of safeguards to ensure information was handled safely and securely.
“It’s also my intention that the consumer data right will work hand-in-hand with the Digital Identity Trust Framework announced earlier this year," Carter said.
The consumer data right will be rolled out sector-by-sector to ensure that the detailed requirements work in practice.
"We will look to align our system with the Australian model introduced in 2019,” Clark said.
The government aims to make a second round of detailed policy decisions on the consumer data right framework later in 2021, and will look to introduce legislation in 2022.