NAB becomes second ‘big four’ bank approved as accredited data recipient

NAB Open Banking CDR ADR

The Australian Competition and Consumer Commission (ACCC), overseer of the Consumer Data Right (CDR) scheme, has approved the National Australia Bank (NAB) as an Accredited Data Recipient.

NAB becomes the second ‘big four’ Australian bank, after the Commonwealth Bank secured its accreditation in May this year, to be approved as an ADR – among just 16 entities currently accredited as data recipients in the Open Banking scheme.

Of those currently registered as ‘active’ ADRs include CBA, Regional Australia Bank, SISS Data Services (an Open Banking software developer), Yodlee (a financial services software developer), and Frollo (a fintech).

While the ACCC has technically approved NAB and comparison website Finder (which secured its accreditation back in May) as ADRs, the regulator has yet to switch on their ‘active’ status.

Once active in the scheme, NAB will be able to – with customer consent – ingest CDR data, as well as register their software products with data holders.

From here active ADRs will be able to offer their customers new products and services based on this data, as well as provide product comparisons.

Data transfers are enabled via APIs “electronically and automatically”, with rules for transfers set by the Data Standards Body.

NAB’s chief innovation officer Howard Silby said the bank has been “developing several customer use cases” for the CDR scheme, applying a “test and learn approach to refine propositions that best meet our customer’s needs”.

NAB declined to comment further on these emerging use cases.

Silby acknowledged that “it will take time for customers to develop familiarity, trust and understanding in using Open Banking,”.

“We’re actively partnering to innovate faster with international non-competing banks, with big tech and fintechs and looking beyond our domestic peers as the competitive benchmark”.

He said NAB was “pleased” to have been approved as ADR by the consumer watchdog, with the bank recognising “the value in ingesting data as a key enabler to deliver faster, easier and more personalised products and services” for its customers.

“A competitive and innovative financial services industry is critical to ensuring great customer outcomes, and the growth of the economy more broadly,” Silby said.

A number of prospective applicants to the CDR have, however, criticised the “onerous” and complex CDR approvals process.

Since 1 July last year, when the CDR scheme was officially launched, just 16 businesses have been accredited as data recipients, with fellow major banks Westpac and ANZ still notably absent.

Australia’s ‘big four’ banks – CBA, NAB, Westpac, and ANZ – were required to join the scheme as accredited data holders by 1 July 2020.