NAB share price drop
National Australia Bank Limited [ASX:NAB] dropped today by 1.27% ($0.35). As expected, due to the ongoing investigations conducted through the Royal Banking Commission, NAB has experienced a high level of volatility within the last 12 months. Stories of bad behaviour seem to be everywhere we turn.
Just yesterday, NAB announced that its digital UBank will be taking advantage of the Aussie government’s ‘open banking’ reforms, which are expected to take place from July next year.
These new reforms will allow customers to be in control of the data that has traditionally been held by banks. And they’ll have the choice to send it to accredited competitors to search for better deals.
NAB is grasping at this opportunity to develop new platforms to connect users to a broad range of new financial services — not just those belonging to NAB — to open up new revenue streams.
What does NAB do?
NAB remains one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and number of customers.
What does this news mean for me as an investor?
This new system will ensure that customers will have greater control over their privacy.
This is obviously a huge improvement considering the allegations that have recently surfaced surrounding NAB.
But despite the news of reform, NAB’s low share price offers the opportunity for investors to enter this market at a reasonable price.
Despite the magnifying glass over the company’s operations, the bank is still considered to be a rockstar dividend payer. Over the past 10 years, it has had an average of 7% per year.
When it comes to reliable stocks, dividend stocks such as NAB are known for their stable income-generating ability.
What does this mean for you? It’s a potentially good time for investors to buy in to a stable stock relative to the rest of the market, if you’ve ever wanted to enter.
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