Risk-based card pricing on NAB’s horizon

National Australia Bank may be edging its way toward different interest rates on otherwise equivalent credit card products, or what is known in other markets as “risk-based pricing”. In an interview with the Dow Jones news wire, Andrew Maitland, NAB’s general manager of cards and personal loans told Dow that the bank was developing “a capability [and] we will try to use that to help differentiate where prices may go in the future. It will allow us to make sure we've got rates that match the customer's credit profile.” Maitland said that in Australia some banks have “got some very aggressive rates, but we've got to be very careful as to how we go at that end of the spectrum. We'll look at all those things but it isn't like we see the entire market migrating to low-rate cards.”