Issue 56: NAB fined, RAB warned and Finance Passport makes more ground

The regulator has again taken action to ensure the data is accurate. While the NAB fine is small in absolute terms, it sends a clear message. It’s good to see Finance Passport continue to grow with Mortgage Choice.

NAB pays $751k in penalties over CDR breaches

National Australia Bank (NAB) has paid $751,200 in penalties following four infringement notices from the ACCC for alleged Consumer Data Right (CDR) rule breaches. The breaches involved failing to correctly disclose credit limit information when responding to CDR data requests made by Accredited Data Recipients on behalf of consumers.

While NAB did not admit fault, the case marks the most significant penalty paid to date for CDR non-compliance. It underscores the critical role of data accuracy in enabling consumers to access better financial services.

The inaccuracies disrupted fintech tools, including mortgage broking platforms, that depend on timely and complete data for loan assessments and credit comparisons. According to ACCC Deputy Chair Catriona Lowe, poor data quality erodes the trust and effectiveness of the CDR ecosystem, preventing consumers from switching or finding better financial products.

NAB cooperated with the investigation and has since corrected the issues, but the case serves as a clear warning: as CDR adoption grows, enforcement will intensify. With over 530,000 Australians using CDR services in late 2024 and expansion into the non-bank sector expected by mid-2026, compliance is no longer optional, it’s a core consumer expectation.

Article link: NAB pays $751k in penalties over CDR breaches

Regional Australia Bank Hit with Privacy Breach Finding

Regional Australia Bank (RAB) has been found in breach of Privacy Safeguards under the CDR following a two year investigation by Privacy Commissioner Carly Kind. The breach, affecting up to 197 customers, was caused by a software fault in RAB’s platform managed by third-party provider Biza Pty Ltd. Despite Biza’s failure to apply a known patch, RAB was held accountable under Section 84(2) of the Competition and Consumer Act, which places liability on businesses for their agents’ actions.

The incident raised serious concerns about data accuracy and consumer risk, including the potential for incorrect credit decisions. It also underscored the importance of robust oversight of outsourced CDR services. While no financial penalties were imposed, RAB was ordered to strengthen its third-party monitoring and review its contractual arrangements.

This case marks a landmark privacy determination under CDR and serves as a wake-up call for all Data Holders relying on external vendors. As the CDR framework continues to scale, the need for accountability and compliance in data sharing ecosystems has never been clearer.

Article link: Regional Australia Bank Hit with Privacy Breach Finding

Article link: Botched CDR integration mixed 197 bank customers’ data

Mortgage Choice taps NextGen to bring Open Banking to brokers

Mortgage Choice has announced a significant step forward in broker technology by partnering with NextGen to integrate open banking into its proprietary Broker Platform. Through this collaboration, mortgage brokers will gain access to real-time financial data using the Frollo Financial Passport, powered by the CDR data.

The tool streamlines the loan application process by enabling faster, more accurate asset and expense verification, reducing turnaround times, and potentially improving pre-approval conversion rates. Nicole Devine, General Manager at REA Group Financial Services, described it as a key milestone in enhancing mortgage broker efficiency and client outcomes.

NextGen’s Renee Blethyn emphasised the move away from outdated data collection methods toward a safer, more modern experience for both mortgage brokers and clients.

This integration signals Mortgage Choice’s first formal step into open banking infrastructure and highlights the increasing momentum behind CDR adoption in the mortgage industry.

Article link: Mortgage Choice taps NextGen to bring open banking to brokers

CDR Representative Arrangements

• Basiq Pty Ltd

  Bano Pty Ltd

  Start date: 19/05/2025

  Notes: The Bolt group offers a number of apps that provide financial management and payment processing.

  Website: https://bolt.net/