Axing screen scraping under review: Treasury 

The Albanese government will examine the practice of ‘screen scraping’ following the release of a new discussion paper, which seeks to gain deeper insights into the widely used technique.

This move followed a recent statutory evaluation of the Consumer Data Right (CDR), which suggested that ‘screen scraping’ should be discontinued where the CDR offers a viable substitute.

‘Screen scraping’ is a prevalent procedure where consumers entrust their login credentials, such as passwords and account details, to a third party for accessing their accounts.

This approach is commonly used in processes such as lending applications.

For example, when consumers share their banking information with lenders or mortgage brokers to facilitate various checks required for responsible lending obligations.

It has served to enable the assessment of a lender’s creditworthiness and even streamline the loan application pre-filling.

However, with the CDR framework gaining momentum and already operational within the banking and energy sectors, offering enhanced consumer protection, the viability of continuing ‘screen scraping’ is being re-evaluated.

The discussion paper highlighted the CDR “as a safer way for consumers to digitally share their data to receive a service compared to screen scraping”, as it eliminates the necessity of revealing login credentials.

Additionally, the CDR includes safeguards regarding the collected data and its permissible usage and disclosure.

The discussion paper also underscored several associated risks, including concerns about cyber security and consumer protection, echoing sentiments expressed in various inquiries.

However, it also noted that “some stakeholders have expressed strong support for the continued use of screen scraping practices in parallel with the CDR”, while others advocate it to be removed in order for CDR to progress.

While there is no specific regulation of screen scraping, numerous frameworks and reforms may impact its use, such as responsible lending obligations and the Privacy Act. Treasury is also welcoming information on alternative frameworks that should be considered.

The consultation period for this discussion paper is open until 25 October, aiming to gather input to inform policy options for regulating screen scraping.

Meanwhile, Treasury has already recommended that the CDR be extended beyond banking and energy to include the non-bank lending sector.

The proposed expansion to non-bank lending is expected to give consumers a more holistic view of their financial status when making significant decisions and a safer alternative to screen scraping, Minister for Financial Services Stephen Jones said.

“These two pieces of work are aimed at giving Australian consumers more ways to take control of their household finances, and greater confidence that their data is being protected,” he said.

A draft of the non-bank lending rules can also be found on the Treasury website and submissions close on 6 October.

[Related: Treasury proposes CDR changes for non-banks]

Kate Aubrey is the senior content producer of Momentum Media's mortgages titles: The Adviser and Mortgage Business.

Prior to joining Momentum Media, Kate covered regional and breaking news for ABC Radio for more than three years.

She has a Master of Arts in Journalism from the University of Melbourne and a Bachelor of International Business and Business Management from Griffith University.

Email Kate at: This email address is being protected from spambots. You need JavaScript enabled to view it.