How secure data sharing could make real estate processes faster, easier, and more reliable

The real estate industry is overdue for a wake-up call. The sector has experienced an increase in volume and sophistication of cyber scams and payment fraud, with bad actors recognising the ripe opportunity that comes with collecting and storing extensive amounts of personal information. In the rental sphere, tenants are feeling trapped, not wanting to share their personal data, but feeling powerless in the process. Experts have also called out the use of third party rental apps for introducing new layers of risk to data security and privacy. 

Long-awaited updates to the Privacy Act and other regulations continue to be discussed and are starting to get implemented. But overall, the real estate industry at a national level has not sufficiently kept up with the pace and severity of cyber security and data privacy threats. 

One of the biggest setbacks has been the view that addressing data privacy and security issues is too complex, costly, and resource-intensive. In reality, there is existing infrastructure that could immediately transform customers' experiences with the real estate industry, while drastically increasing the resilience of real estate businesses. 

Plugging into a secure, revenue-generating ecosystem

The Consumer Data Right (CDR) is already up and running in the banking and energy sectors, delivering safe and reliable ways for Australians to share their data, compare their options, and access the best service for their needs. The Digital ID framework has been defined and is actively being developed.

Rather than re-inventing the wheel, the real estate sector and other adjacent sectors could connect to the CDR ecosystem and benefit from its infrastructure. Indeed the Department of Finance is currently running a Rental Affordability Experiment to utilise CDR and Digital ID data.

Almost a million Australians already use and share their data with the CDR. It provides a system that accurately and securely provides the financial and utility data to provide insights meeting the requirements of rental applications. For real estate agents, instead of asking for this kind of information from every applicant for every property they're applying for, they could simply cross-reference with the CDR to avoid needing to collect or store new personal information. 

Turning pain into profits

A common bug bear for rental applicants is the extensive admin required to make an application, and the broad range of personal information required by brokers and real estate agents to be considered at all. The CDR could remove repetitive processes and form filling, the use of unsecured channels for sensitive data, and the requirements for extensive and multiple pieces of document verification like payslips. 

For example, instead of: 

• Submitting documents to prove a digital identity, Digital ID could be used to provide confirmation of identity without document uploads

• Providing multiple payslips for verification, employment could be confirmed through bank transaction data and associated insights provided by the CDR

• Sharing utility bills for proof of address, someone's address could be automatically verified through the Energy Retailer data in the CDR

By directly addressing and eliminating these customer pain points, there will be more customers applying for more properties, which will increase competition without necessarily increasing the admin involved for real estate agents to get the best price and outcomes for their properties. 

Compliant by default

Consumers are increasingly aware of the risks associated with sharing their personal data, calling on the government and businesses to take a more thorough and proactive approach to preventing scams, fraud, and cyber attacks. It is often the case that consumer demand for regulatory change far precedes any actual change in legislation and regulation itself. In the meantime, consumers will be looking to work with businesses that take security seriously, regardless of the compliance requirements. 

The government and industry bodies are continuously looking for ways to make all industries more accountable for their own and their customers' data security. As data regulations and requirements evolve over time, it's important for businesses to be ahead of the curve, not just to keep and earn new security-conscious customers, but to ensure good governance is part of the business structure, rather than being an extra point on the to-do list. 

In an increasingly competitive market, landlords and renters will be looking for partners that understand their pain points, can work efficiently as the real estate sector evolves, and can minimise risk to their personal privacy and security. The CDR and the Digital ID framework is full of untapped opportunities, and providing secure data sharing to the real estate industry is just a starting point for how it could transform industry processes for the better.