NAB has become the second bank of the ‘big four’ to become an accredited data receiver under the Consumer Data Rights (CDR) scheme.
The bank was accredited by the Australian Competition and Consumers Commission (ACCC) this week, which means it will soon be able to ingest data from accredited data holders.
It joins Commonwealth Bank, which became the first major bank to be accredited in February, and Regional Australia Bank, as well as 14 other Accredited Data Recipients (ADRs).
Other ADRs include credit bureau illion (and its subsidiary Credit Simple), software developer Intuit, comparison website Finder, and fintech firms Frollo, Ezidox, Yodlee, Adatree, and Basiq.
Chief Innovation Officer Howard Silby welcomed the accreditation, which he said would allow the bank to offer more personalized products and services to clients.
“A competitive and innovative financial services industry is critical to ensuring excellent results for clients and the growth of the overall economy,” Silby said. iTnews.
“NAB recognizes the value of data ingestion as a key enabler to deliver faster, easier and more personalized products and services for our customers.”
Silby said the bank has been busy “developing various client use cases for open banking” and is “employing a test-and-learn approach to refine the proposals that best meet the needs of our clients.”
However, he noted that clients are likely to become familiar with and trust open banking.
The digital lending subsidiary is also covered by ADR accreditation, which covers NAB at the level of an authorized depository institution (ADI).
Having become one of the first data holders when the CDR scheme was first launched in July 2020, NAB set out to become an ADR last year to improve information about its customers.
At the time, now-head of open data engineering, Damian Fitzgibbon, said the bank was looking at how it could use transactional data for income validation in mortgage loans or credit card applications.
Currently, clients are required to provide proof of income in the form of a pay stub or bank statement, which Fitzgibbon said was a “really clumsy process” for clients and could lead to fraud.
Other opportunities could include “giving customers an aggregated view of all their accounts, be they NAB accounts or with other banks, or being able to unify all their payment details.”
In July, NAB sought out a senior product owner for open data on a “newly created team” with an understanding of the obligations necessary for ADR accreditation.