The government has drawn a line in the sand for the comprehensive credit reporting (CCR) regime, with Treasurer Scott Morrison
stating it will become mandatory from 1 July next year.
Currently, less than 1% of all CCR data is shared in the public realm, Morrison said in an address to the FinTech Australia Collab/Collide Summit in Melbourne yesterday (2 November).
Earlier this year, the Treasurer gave the target for credit providers to meet a threshold of 40% data reporting by the end of 2017.
“It is clear this target will not be met. This is why the Turnbull Government is taking action now to meet its commitment and provide certainty for industry and customers.”
The four major banks will be the first in line to face mandated reporting, allowing the smaller lenders time to develop their systems. The big four will be required to have 50% of their credit data ready for reporting by 1 July 2018, increasing this to 100% a year later.
The move will give lenders access to a “deeper, richer set of data,” Morrison said, which would encourage competition for SME and retail customers while improving lenders’ ability to meet responsible lending obligations.
Added transparency will also open the lending market up to new players who can undercut the major banks with lower interest rates without fear of default, he said.
“For borrowers, this regime should lead to one thing – a better deal on your mortgage, your personal loan or business loan.”
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