NewsBite

NAB rolls out comprehensive credit reporting

NAB is the first major bank to share with credit bureaus both positive and negative credit information about its customers.

National Australia Bank’s move will put further pressure on its rivals
National Australia Bank’s move will put further pressure on its rivals

National Australia Bank has become the first major bank to share with credit bureaus both positive and negative credit information about its customers, today rolling out comprehensive credit reporting for personal loans, credit cards and overdrafts.

The move will put further pressure on its rivals to speed up their adoption of CCR and follows the release this month of the government’s draft legislation for mandatory comprehensive credit reporting.

“Under CCR, we’ll now have a more holistic picture of a customer’s credit situation, so we’re better able to make sure our customers receive the right type and amount of credit for their individual circumstances,” NAB chief operating officer Antony Cahill said.

“We’ve taken a leadership position on comprehensive credit reporting since the start, because we believe it’s good for competition, and will mean better outcomes for customers.”

According to the draft legislation, the major banks will be required to supply 50 per cent of their comprehensive credit reporting data to credit bureaus by July 1, increasing to 100 per cent a year later. A 90-day transitional period has also been built into the draft legislation to give the major banks time to meet these deadlines.

While most Australians have a credit report, until now they have only contained negative information, such as loan defaults. With the launch of CCR, positive credit information will be added, including which accounts have been opened and credit limits on those accounts, providing a more balanced picture of a person’s history.

The sharing of credit information and more open banking will increase competition between the banks, policymakers believe, allowing lenders to make better decisions.

Read related topics:National Australia Bank

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.theaustralian.com.au/business/financial-services/nab-rolls-out-comprehensive-credit-reporting/news-story/188546cb6335ccad01084589044ab2b4