National Australia Bank (NAB) will be the first major bank to share positive and negative credit information about its customers with credit bureaus, saying it will start to roll out comprehensive credit reporting by next February.
NAB’s move, which will increase the amount of information held by companies like Equifax (Veda), including credit limits and loan repayment histories, will intensify pressure on rivals to accelerate their own CCR plans, ahead of Wednesday’s third grilling of the major-bank chief executives by the David Coleman-chaired parliamentary economics committee.
Policymakers believe that widespread adoption of CCR and the trend towards open banking will increase competition in a sector dominated by the nation’s big four lenders. Ultimately, it could also lead to the introduction of risk-based pricing, and in the short term lower the risk of a mandated CCR solution.
The Turnbull government is already working on draft legislation for the end of the year after painfully slow progress on a voluntary regime. NAB chief operating officer Antony Cahill told The Australian it was inevitable that the industry would eventually adopt CCR.
Source: The Australian Business Review