Bank switching easier with new rules

Payments NZ chief executive Steve Nichols says banks will now help people who want to switch banks, assisting with the transfer of direct debits, direct credits and other areas affected in the process.

Previously when customers wanted to shift their accounts from one bank to another the most time consuming task was the process of transferring over payment authorities.

Moving payment authorities like automatic payments and direct debits not only requires help from the customer's new bank but also relies on the co-operation of the old bank to ensure that nothing is missed.

Nichols says the new rules compel banks to work together to transfer information from one bank to another to make the change seamless for the consumer.

The governance of New Zealand's bank to bank payment clearing and settlement system, was transferred from the New Zealand Bankers' Association (NZBA) to Payments NZ, a new company, in December.

Payments NZ is responsible for setting and overseeing the rules and standards governing the way payment instructions are exchanged and settled and reviewing payments system policies and procedures.

Comments from our readers

On 12 January 2011 at 12:10 am Matt Watts said:

You'll be happy to know that BNZ is the only Bank that already has a Specialist to manage this whole process on the customers behalf, and has done so for the last 2 years. This way the transition between Banks is a smooth process and seamless for the customer. They are called 'Payments Specialists' and are located throughout the Country.

On 22 January 2011 at 9:37 am Paul Latham said:

Most of the major banks have had internal switching teams for years.

The "hassle" occured when the old bank didn't assist with the switching process in a timely manner, for obvious reasons.

The major benefit of the introduction of these new rules, is that "All" banks now have to make it an easier and a more seamless process regardless of if they are losing or gaining a customer.

The trick will be in making the New Zealand public aware of these changes. So that those who wish to "vote with their feet" and switch banks, now know it's not so much of a hassle as it used to be.

Bank switching easier with new rules

Customers can expect switching banks to be easier this year as Payments NZ has enacted changes requiring greater co-operation between banks in the process.

Monday, January 10th 2011, 8:38AM 2 Comments

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