A big four bank has announced this week that from February 2018, it will gain a deeper insight into its customers’ financial situation through comprehensive credit reporting (CCR).
In a statement this week, NAB said that comprehensive credit reporting will provide a more complete picture of a customer’s situation, and will mean that lenders are better able to match the provision of credit to a customer’s individual needs.
“Most Australians have a credit report, and with comprehensive credit reporting, these reports will represent a more balanced reflection of their credit history,” NAB chief operating officer Antony Cahill said.
“NAB has championed comprehensive credit reporting from the start because we believe it’s the right thing to do for customers.
“Comprehensive Credit Reporting will help ensure customers get the right product and credit that’s suitable for their needs, and it will drive more competition in the industry.”
Currently, an Australian’s credit report contains only "negative" information such as payment defaults, credit enquiries, bankruptcies, and court orders and judgments.
Under a comprehensive credit reporting, positive credit information will be added, including accounts that have been opened, credit limits on those accounts and details of monthly payments made.
“By having a more complete picture, we can have better discussions with customers and make the right products and credit limits available to them,” Mr Cahill said.
NAB is phasing its rollout of comprehensive credit reporting, commencing with personal loans, credit cards and overdrafts to ensure that there is a smooth transition for customers.
“A number of smaller players have already started participating in comprehensive credit reporting, and we look forward to seeing it roll out across the industry,” Mr Cahill said.
Comprehensive credit reporting has been supported by the Federal Government, and will bring Australia in line with many other regions, including New Zealand, the USA and the United Kingdom.