Bank customers can be confident about the protection of their private financial information held by banks despite a decision saying Westpac got it wrong in relation to political activist Nicky Hager, says the New Zealand Bankers’ Association.
KPMG’s Financial Institutions Performance Survey for the 2016 financial year has found that the strength of the New Zealand banking sector continues to underpin its performance.
“The strength of New Zealand’s banks continues to provide a solid platform for our economic growth. Our banks are well capitalised and regulated, and highly competitive. That means they’re well-placed to meet the needs of businesses and households,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
Overall profits in the sector were down in the last year. This was due to tightening margins, a decrease in non-interest income, rising operating costs, provisioning for bad loans, and global market volatility.
The average interest rate margin dropped from 2.28 to 2.15%, which was driven by strong competition and the rising cost of funding. Lending competition remains strong in an environment where interest rates are tipped to rise gradually.
“Interest rates are still at historic lows. It’s a good time to assess your circumstances and get your finances in order so you can manage any increase in the cost of borrowing.”
The report also identified further digitisation and innovation in banking services as a focus for 2017.
“This innovation is largely driven by changes in customer behaviour and preferences, along with competition inside and outside the banking sector. Banks need to keep their customers happy in this highly competitive environment. To enhance customer experience they’re constantly looking at ways to improve banking services,” says Scott-Howman.
Standards New Zealand
The banks, through their industry lobby the New Zealand Bankers’ Association, sought another round of consultation “to work out the detail of the disclosures required, in particular to ensure that the disclosures are comparable between banks with different structures, and to address any other issues that will likely arise.”
“Fraudsters are always looking for new ways to trick people into providing confidential information which allows them to access bank accounts.”
NZBA advises people to never give out confidential information such as PIN numbers or bank account usernames.
Inland Revenue Department
The New Zealand Bankers’ Association has issued a warning to beware fraudsters pretending to be utility companies and banks who are targeting elderly people.
“Never give out bank account usernames, passwords, PINs or verification codes. While your bank may ask questions to confirm your identity, it will never ask for this confidential information.
“If in doubt, just hang up and call your bank’s 0800 number to report the call,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
In the latest scam, fraudsters pretending to be power companies or telcos are calling people to say there’s a problem with their payments. They then transfer the call to a fake “bank”, which asks the ta get for information that allows them to access to their bank accounts and withdraw funds.
“Your utility service provider will never call you and then transfer you to your bank,” says ScottHowman.
Tips to help you avoid scams:
- A bank will never ring you and ask you to provide account details or personal information. If you get such a call, phone your bank’s 0800 number to report it.
- Never tell anyone your login details, PINs, passwords or verification codes – not even the police, bank staff, friends or family. Your bank will never ask you for your PINs or passwords.
- Check your statements. Advise your bank immediately of any unauthorised transactions.
- If you suspect you’ve been taken in by a scam, contact your bank as soon as possible.
More information on scams and how to avoid them is available here.
Ministry of Business, Innovation and Employment
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