Powered by MOMENTUM MEDIA
subscribe to our newsletter

MyState joins CCR regime

The non-major bank has announced that it is now fully compliant with obligations under the mandatory comprehensive credit reporting regime.

MyState Bank has announced that it is one of the first lenders to have 100 per cent of its CCR data ready for reporting. As such, MyState Bank said it would be in “a better position to match customers with the right type of product for their specific credit situation”.

The National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018, which was introduced into parliament mid-last year, requires lenders to report positive credit information, such as when minimum payments on a credit card, mortgage or personal loan are being made on time.

While the bill has been put on the backburner numerous times, the financial services industry has been making progress in adapting to the new regime.

By the end of September 2018, which was the government-imposed deadline for the major banks to insert 50 per cent of their CCR data into a data exchange system, the big four banks, along with Citibank, HSBC, Teachers Mutual Bank, RateSetter and MoneyPlace had become participants in the regime.

Advertisement
Advertisement

The government said that 100 per cent of CCR data would need to be shared by the big four banks by the end of September 2019, and the deadlines for other lenders are 12 months after the major banks.

It is believed that CCR will allow all participating lenders, including non-banks and fintechs, to better assess the risk status of a loan applicant.

“CCR is seen as an important tool for consumers to take control of their credit reputation,” MyState Bank said.

“It will also allow banks and other licensed credit providers to access a more holistic picture of a consumer’s credit profile, enabling them to make more informed and responsible lending decisions.”

The bank’s managing director and CEO, Melos Sulicich, stated that “customers can expect a more accurate credit score reflective of their actual behaviour”, further noting that Australians with blemishes on their credit report would not necessarily have to be disadvantaged due to past financial hardships.

PROMOTED CONTENT


“For MyState Bank, the onboarding of CCR puts us in the best possible position to ensure we are aligning our products with the best interests of customers, based on their personal credit-related behaviour,” Mr Sulicich added.

Standard & Poor’s (S&P) noted in its 2018 report, Australian Structured Finance: Credit Analysis in a Digital Ecosystem, that CCR would also “facilitate greater consistency in debt-serviceability assessments”.

The ratings agency further predicted that an open data model would reduce the financial services industry’s reliance on time-intensive manual processes, because a greater amount of information will be quickly and easily obtainable, which in turn will improve operational efficiency and scalability, while “[reducing] the risk of deterioration in lending standards during periods of strong growth, when headcount might not keep pace with lending growth”.

[Related: CCR could be a ‘gold standard’ for credit risk]

MyState joins CCR regime
Financial data
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.

Tas Bindi

Tas Bindi is the features editor on the mortgage titles and writes about the mortgage industry, macroeconomics, fintech, financial regulation, and market trends.  

Prior to joining Momentum Media, Tas wrote for business and technology titles such as ZDNet, TechRepublic, Startup Daily, and Dynamic Business. 

You can email Tas on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Latest News

True Savings, a new online brokerage headed by former CBA executive Pete Steel, has entered the Australian mortgage market. ...

Pre-registrations have opened for Citi’s upcoming buy now, pay later offering, Spot., which will launch in October. ...

New Zealand’s central bank is primed to further tighten mortgage lending standards, following concerns with a rise in high-LVR and high-DT...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.