Suncorp is the latest bank to complete the migration of comprehensive credit information under the lending industry’s new credit data sharing protocol.
The Queensland-based regional bank went live with comprehensive credit reporting last week, bringing the number of lenders actively participating in the system to 42.
Data covering more than 90 per cent of all Australian credit contracts are now captured by the new reporting arrangement.
The four major banks largely completed their CCR rollouts last October.
The pooled credit database is expected to widen before the end of the year when Bendigo Bank and Bank of Queensland begin feeding additional information into the system.
Disruption caused by the Covid-19 outbreak appears to have slowed the number of institutions adopting comprehensive reporting this year.
Suncorp is the seventh lender this year to enhance the credit information it supplies to the pooled database, with Athena Home Loans, 86 400 and Macquarie among the other institutions to recently update their reporting processes.
“Comprehensive credit reporting is now being applied to more than 90 per cent of consumer credit accounts,” Mike Laing, chief executive of the Australian Retail Credit Association,” said yesterday.
“We are about to see more of the smaller institutions come on board in the next 12 months.”
Banking experts expect a progressive shift in the way credit products are priced in the Australian market as CCR practices are bedded down.
The expectation is for lenders to deploy risk-based pricing as competition intensifies for borrowers with reliable credit histories and deeper capacities to service debt.
While there is evidence of such change in the pricing of personal loans, the impact has been less discernible in the home loan market.