Trending Financial News 6 December

Banks consider credit card gambling ban

The Australian Bankers Association is proposing new restrictions on the use of credit cards for gambling. The ABA set out a series of questions covering risks and concerns about how to limit the use of credit cards for gambling purposes.

ABA chief executive Anna Bligh said the feedback from the community “will then help banks as they each consider further reform on this issue”. Submissions on the topic are due by March 4, 2020.

Macquarie adopts comprehensive credit reports

Macquarie Bank will commence integrating comprehensive credit reporting (CCR) in mortgage assessments from next week. CCR involves the sharing of a consumer’s positive and negative credit behaviour. Macquarie said CCR would provide it with greater insight into a borrower’s suitability for a loan according to Mortgage Business.

Macquarie will have access to 2 years of borrower credit history, including total limits, repayment histories and the number of loans and cards held.

Borrowers want faster mortgage approval times

Macquarie Bank’s Greg Ward told a parliamentary committee last week that one big advantage his bank had in the market was fast turnaround times for home loan applications.

Mr Ward said that after investing in improving its mortgage business, Macquarie’s turnaround times far outpaced the market average.

“The average turnaround times in the industry, when we looked at this, was 25 days for formal approval on a mortgage.

“For a lot of our customers, formal approval happens within three to five days. If they have a complete application with all the relevant information required, [approval] can sometimes happen on the same day.”

Banks forced to adopt comprehensive credit reports

The Morrison government has re-introduced its mandatory comprehensive credit reporting bill. The National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit reporting and Other Measures) Bill 2019 was originally passed by the House of Representatives in June last year but lapsed.

The new proposed law forces big banks to share more data about borrowers with credit reference agencies, making credit reports more comprehensive and less negative.

By June 2021, big banks must supply all customer information to the agencies. The Australian Retail Credit Association estimates that 80 per cent of consumers are already in the comprehensive system.

ING is Australia’s ‘most recommended bank’

In Australia, ING is “the most recommended bank” as reported by Roy Morgan research. ING has 1.7 million customers and is Australia’s fifth largest home lender.  ING is mostly an online ‘direct’ bank without a large branch network. ING does not have a full suite of banking products like credit cards and personal loans. ING focusses on savings and home loans. ING says simplicity is part of its success story.

You can see all of ING Australia’s loan, account and term deposit rates at InfoChoice.

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