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Banks spent $1.5b on account switching. No one is using it

James Eyers
James EyersSenior Reporter

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Only 0.3 per cent of bank customers are using an expensive federal government-backed scheme designed to make it easier for them to switch accounts and a report commissioned by major lenders suggests it risks turning into a white elephant.

Known as the consumer data right, the program is too complicated, analysis conducted for the Australian Banking Association concludes, and does not have a clear reason for use four years after it was launched under the then Morrison government.

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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au

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    Original URL: https://www.afr.com/companies/financial-services/banks-spent-1-5b-on-account-switching-no-one-is-using-it-20240702-p5jqei