Lender participation in Australia's credit reporting framework nearly triples in six years
Australia's comprehensive credit reporting (CCR) framework has drawn strong backing from lenders ahead of a regulatory review, with new data showing the industry-led scheme has grown from 49 participating organisations in 2020 to 137 today.
The findings were published by the Australian Retail Credit Association (Arca) as part of its submission to the Australian Competition and Consumer Commission (ACCC) in support of the continued authorisation of the Principles of Reciprocity and Data Exchange (PRDE), the framework governing the exchange of CCR data between lenders.
The submission reports that more than 22 million consumer credit accounts are now captured under the framework. Consumer awareness has also risen, with 64% of Australians surveyed having obtained a copy of their credit report, up from 47% in 2020.
"The experiences shared by participating lenders show how comprehensive credit reporting is supporting more informed lending decisions, stronger competition and improved outcomes for consumers," said Elsa Markula (pictured right), chief executive of the Australian Retail Credit Association.
Bank of Queensland said the adoption of CCR scorecards lifted approval rates by up to 14% and improved its capacity to assess customers who had experienced financial hardship.
"Having a more complete understanding of our customers' financial circumstances helps us make more informed lending decisions," said Brad Davis, general manager – market risk, credit models and insights at the Bank of Queensland. "It gives us greater confidence to lend to customers who can afford credit, while recognising those who have recovered from financial hardship and supporting better outcomes for both customers and lenders."
Great Southern Bank reported that richer credit data had supported its expansion into the first-home buyer segment and improved overall lending efficiency.
According to digital lender MoneyMe, the framework had enabled higher approval rates while maintaining default performance, and had helped non-bank lenders compete more effectively with the major banks. "Comprehensive credit reporting helps level the playing field against the banks because it gives lenders far richer data on how customers actually manage credit," said Benjamin Korczak, chief credit risk officer at MoneyMe. "That's a real benefit for customers because it means responsible borrowers can be rewarded with better rates and terms."
For non-bank lender Humm, CCR had improved transparency across its lending portfolio and supported confidence among institutional funding partners. "Greater transparency across the credit ecosystem strengthens confidence in lending portfolios and supports continued access to funding for non-bank lenders," stated Scott Liang, head of credit risk AU/NZ at Humm. "That confidence enables us to continue investing and innovating."
Markula said the past five years had seen both the scope and quality of credit reporting improve materially. "We've seen participation grow significantly, the quality of credit reporting improve, and the framework become an increasingly important part of Australia's lending ecosystem," she said. "This submission captures how lenders are using richer credit data to make more informed decisions and better support their customers."
The ACCC's public consultation process will determine whether the PRDE framework receives continued authorisation.
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