National Australia Bank fined over data-sharing scheme

One of Australia’s big four banks has been fined more than $750,000 over the use of data in an economy-wide system.

The National Australia Bank was issued infringement notices by the competition watchdog over breaches of data rules.

NAB has avoided admitting to breaking the rules but has now paid the $751,200 fine over the four breaches.

The issue stems from NAB’s interactions with the economy-wide Consumer Data Right (CDR) data sharing scheme.

“Poor data quality prevents consumers from experiencing the full benefits of the CDR,” Australian Competition and Consumer Commission deputy chair Catriona Lowe said.

“When banks or energy retailers don’t provide accurate data, consumers can’t take advantage of CDR products and services to compare products, find better deals, manage their finances or make informed decisions about product switching.”

The bank co-operated with the consumer watchdog’s inquiry and has rectified the issues.

The Consumer Data Right gives consumers the right for their data to be safely transferred between data holders and accredited persons, making price comparisons based on up-to-date and correct data easier.

The system began in the banking sector in mid-2020 and for energy retailers in late-2022. In the second half of 2024, 530,000 people used the system for a total of 582 million data requests.

In mid-2026, non-bank lenders will become part of the system.

Ms Lowe said the banks had several years to understand their CDR obligations.

NAB’s breaches relate to disclosure or accurate disclosure of credit limit data to different CDR providers on behalf of consumers.

“NAB has made a significant investment to deliver the complex CDR requirements as well as investing resources to develop our capabilities to deliver new innovations,” a NAB spokesperson said.

“We have fully co-operated with the ACCC’s review and have resolved the data quality error identified.

“We appreciate and recognise the importance of ensuring we are meeting the standards necessary and expected under the regulations.”