The Comprehensive Credit Reporting (CCR) just received a big boost with the Australian Government announcing it will legislate for a mandatory comprehensive credit reporting regime to come into effect by the 1st of July 2018. According to the Australian Treasurer currently less than 1 per cent of credit data is being reported.
The four major banks will be the first to be required to report; they account for approximately 80 per cent of the volume of lending to households. The four major banks will be required to have 50 per cent of their credit data ready for reporting by the 1st of July 2018, increasing to 100 per cent a year later. The Government will consult further on whether to mandate additional institutions being included on a phased in basis as well as on the implementation mechanisms for this decision, including the legislation.
The Government believes its decision will lead to greater competition in lending and provide better access to finance for Australian households and small businesses.
With this clear intent, it is only a matter of time, we believe, before CCR is mandated across all lenders.
finPOWER Connect has simplified the implementation of CCR by creating a “one step” CCR export process to export your CCR data in a format that is easily consumed by your Credit Bureau. This process circumvents many months of project work and allows clients of finPOWER Connect to start enjoying the benefits of CCR much quicker. For more information on the CCR module for finPOWER Connect see finPOWER Connect Comprehensive Credit Reporting Add-On.