21 Oct 2016

NAB welcomes progress report on Australian Bankers’ Association initiatives

NAB today welcomed the six month report by Independent Governance Expert, Ian McPhee AO on how the industry is progressing on the Australian Bankers’ Association (ABA) reform package of six initiatives.

NAB Group Chief Risk Officer and Chair of the ABA’s Industry Strategy Working Group, David Gall said: “These reforms are a priority for our industry and NAB is keen to accelerate their implementation and make sure they are well-resourced so that consumer benefits will be felt sooner.

“As outlined by the McPhee report, ‘overall good progress’ has been made  on a number of the initiatives including appointing  independent customer advocates for retail and small business customers to make it easier for them when things go wrong, improving whistleblower protections and strengthening the Code of Banking Practice.

“We are serious about making sure that we are doing the right thing by our customers and will remove product based incentives and product sales commissions where they have the potential to lead to poor customer outcomes,” Mr Gall said.

NAB activity

Review Product Commissions

  • On September 30th 2016, we put in a detailed submission to the Review into Product Sales Commissions and Product-based Payments by independent expert Stephen Sedgwick AO
  • Removed pay for performance criteria from determining fixed pay increased in our recently approved Enterprise Agreement
  • Increased the focus on risk management in our performance framework
  • Instituted monthly performance discussions to support our people to perform in the best interests of customers

Making it Easier for Customers when things go wrong

  • NAB announced in July 2016, the appointment of experienced consumer advocate, Catherine Wolthuzien as its independent customer advocate for small business and retail customers. This complements our Wealth Independent Customer Advocate, Professor Dimity Kingsford-Smith
  • Established an Office of the Customer Advocate to strengthen governance and customer disputes and associated remediation
  • Developed a 100 day plan and Customer Advocate has begun to review existing customer concerns

Reaffirming our support for employees who ‘blow the whistle’ on inappropriate conduct

  • Appointed a Head of Whistleblower Program
  • Engaged an external consultant to undertake an independent review of NAB’s Whistleblower Program
  • Revising Whistleblower Policy and Procedures and developing a communication and awareness plan for all employees
  • Executives scorecards enhanced to promote openness and transparency and encourage our people to raise  issues and concerns
  • Strengthening the independence of our Whistleblower Program by outsourcing the call and email receipt of the Confidential Hotline

Strengthening our commitment to customers in the Code of Banking Practice

  • We lodged an independent submission and contributed extensively to the ABA’s submission to the Review by independent expert Phil Khoury.

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