Tuesday July 29, 2014
ME Bank has appointed Carlo Cataldo as its new Chief Risk Officer in a move that focuses the Bank’s plans to capitalise on the new comprehensive credit reporting (CCR) regime in 2015.
Carlo comes with almost 20 years of experience in senior risk roles, including 13 with GE Capital – six as the Consumer Chief Risk Officer and several years running, championing or consulting on credit and operational risk infrastructure projects. Prior to GE Capital Carlo worked several years with Experian developing scorecard and decision systems and fraud solutions across Asia Pacific.
ME Bank CEO, Jamie McPhee, said Carlo brings strong leadership and a unique perspective as the Bank seeks to capitalise on its technology transformation program and other growth opportunities, notably CCR.
“As a founding director and previous chairman of the Australasian Retail Credit Association (ARCA), Carlo has been a strong advocate for CCR including representing ARCA and the ABA in Parliamentary Senate hearings.
“At GE Money in Australia he was involved in lobbying for further changes to the Privacy Act to support broader access to credit and more comprehensive credit reporting and responsible lending.”
“He’s well placed to capitalise on the CCR opportunity for the Bank.”
Carlo said he was excited to join ME Bank and contribute to its growth plans.
“CCR in particular provides great opportunities for ME Bank, while delivering big benefits to consumers and to the economy more broadly, by opening up lending to a large pool of underserved but creditworthy borrowers.
“It has the potential to help many thousands previously excluded from accessing credit including first home buyers, households on lower incomes, young adults, ethnic minorities, women, renters, and people with minor credit impairments.
Carlo said he was encouraged to see CCR get attention in the Financial Service Inquiry’s interim report, particularly comments around making CCR mandatory.
“There is currently no obligation on lenders to participate in CCR and while lenders like ME Bank will adopt relatively quickly, the system doesn’t work unless all lenders participate. No lender, even the major banks, will have a full picture of customers’ lending commitments unless the system has as full participation as possible.”
ME Bank is looking to expand its lending portfolio in light of the new regime, including introducing new home, personal and business loan products.
“We will work to conduct modelling to fully understand the expected uplift in credit approvals from comprehensive date,” said Carlo.
“Once we have a more accurate picture of who can access credit in the future we can better educate those segments of the population about the potentially life-changing impacts of the new regime.”