New rules that will give Australians control over their financial data will make switching banks and applying for new loans or credit cards less painful, federal Treasurer Scott Morrison says.
Mr Morrison on Friday released a government-commissioned report into so-called "open banking" and how such a system could work.
Under the regime, customers would have the ability to instruct their bank to send data to a competitor for a potentially better deal, product or service.
"This disruption to the major banks' stronghold on data will make the process of switching between banks less painful and help overcome the 'hassle factor' that sees customers stay with their current bank even when there are better deals on offer," the treasurer said at a lunch in Sydney.
"It's your data. You deserve the right to maximise its value and use it to your advantage."
Mr Morrison also reckons it will encourage the development of new innovative products - such as mobile apps that will allow people to manage their finances and get real-time budget advice from experts over live-chat.
The review, by King & Wood Mallesons partner Scott Farrell, has made 50 recommendations.
It suggests banks be required to give customers not only data given to them - but all transactional data.
Due to the potential cost, the report has recommended the regime start with the major banks, before capturing smaller players.
Mr Morrison said stringent security and governance rules would be central to the system, which is expected to start from mid-2019.
Australian Associated Press