The boss of NAB says the bank’s decision not to raise their standard variable rate is about building “trust and greater advocacy” with their customers.

The National Australia Bank has broken away from the other major banks, deciding to keep their rate on hold at 5.24 per cent.

Westpac was the first to raise their rate, which caused ANZ and CBA to follow suit.

NAB’s CEO Andrew Thorburn tells John Stanley the royal commission has proven changes are needed in the banking sector and their move will help rebuild trust with customers.

“What we’re doing with our existing customers, our existing mortgage customers, is really wrapping our arms around them and thanking them for doing business with us.

“If we can start to rebuild trust and greater advocacy and loyalty with those customers, that becomes a really virtual cycle where they do more business with us, they feel better about banking with us, they recommend us to their family and friends.

“That’s what we’ve lost over 20 years and that’s what we want to start to regain.”

NAB’s move comes just a week after ASIC launched legal action against the bank over its ‘fees for no service’ misconduct.

The corporate watchdog will allege the bank charged thousands of superannuation members for services they were never given.

Mr Thorburn tells John they will “remediate” all customers who were affected. He says in light of the royal commission, the banks have a long way to go to rebuild trust.

“We’ve got to show by action that we’re listening and we’re moving forward to re-earn people’s trust again.”

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