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NAB introduces mandatory VOI changes

by Hannah Dowling11 minute read
NAB introduces mandatory VOI changes

The major bank has announced new, compulsory measures for brokers to meet identity verification requirements during the COVID-19 pandemic.

NAB has announced temporary changes to its broker policy to meet both NAB’s Know Your Customer (KYC) and the verification of identity (VOI) regulatory requirements, while also complying with the government’s social distancing measures.

For applications submitted from this Thursday (23 April) until further notice, brokers will be required to use MSA National’s remote VOI app – IDyou – to sight, collect and verify borrower identity documentation for all NAB consumer loan applications. At least one photographic identity document is required by NAB, but more is preferable.

In addition to using IDyou, NAB will require brokers to conduct loan application video interviews with the prospective borrower and use this video interview to verify that the original documentation matches the person interviewed.

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This documentation will then need to be compared against the copies filed via the IDyou app, and brokers will need to keep a record of the entire process via ApplyOnline, including specific notes and a screenshot of the video meeting occurring. 

ApplyOnline’s Document Verification Service and the Customer Identity Check will both still be required in addition to the IDyou process, all of which will comply with the Broker Declaration requirements, according to NAB.

These measures reportedly meet the requirements of the Australian Registrars’ National Electronic Conveyancing Council to ensure that a person is who they claim to be while also meeting the requirements of internal and external anti-money laundering laws and policies.

Customers will be required to have all documentation prepared in advance and download the IDyou app to upload photos of their original documents.

Any applications not yet finalised and submitted by 23 April will need to comply with the new requirements, and brokers will need to follow the IDyou procedure for identity verification to complete the submission.

The news comes following the announcement that NAB will tighten serviceability requirements on all new home loan applications received after 20 April 2020.

Under the new policy, brokers will be required to make additional enquiries into a borrower’s financial position in light of the economic fallout from the coronavirus (COVID-19) outbreak and complete a COVID-19-specific template as part of the home loan application.

The template would include considerations of a client’s job/income security and any COVID-19 relief assistance they have received or requested, including loan repayment freezes or the JobKeeper wage subsidy.

Steve Kane, NAB’s general manager, broker distribution, told The Adviser that the changes are designed to ensure that the bank continues to lend responsibly.

“We continue to assess all applications based on a range of measures to ensure our customers are able to appropriately manage their home loan commitments, both today and in the future,” he said.

[Related: NAB clamps down on serviceability]

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