But NZ Bankers’ Association chief executive Roger Beaumont says it’s important we get it right. With so much new regulation and compliance, banks have told the Government they need time to implement challenges such as customer privacy and data security.
It’s important to get it right for customers, says the New Zealand Bankers’ Association in response to the government’s announcement today about open data for banking.
New Zealand Bankers’ Association chief executive Roger Beaumont says: “The consumer data right will help make open data sharing a reality for banking and other sectors. It’s important to make sure we get it right for consumers. Because of the weight of other regulation and compliance falling on banks at the moment, such as the new conduct regime and increased capital requirements, along with staffing and other supply chain constraints, we’ve told the government that banks need time to enable quality products that will excite New Zealand consumers. This will take some time to implement.
“Getting CDR right will involve ironing out a lot of detail, for example ensuring customer privacy and data security when third parties access their information.
“There may also be lessons from other countries the government could take into account as it develops the legal framework, especially around the need to align CDR with other regulation to make it as easy as possible for participants to implement.
“In the meantime, the government may wish to consider investing in a public awareness campaign about CDR. Our research shows that around two thirds of New Zealanders think sharing your banking information with third parties to access other financial services is either a bad idea or they don’t understand it.
“We look forward to working through the detail on the proposed consumer data right.”
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“The banking industry worked closely with him in the early response to covid and was grateful for his support for banks to offer customers deferred or reduced repayments for around $70 billion in loans.”
Last year they made a direct contribution of $8.52 billion to the New Zealand economy by spending $6.12 billion running their businesses here and by paying $2.4 billion in tax. The total contribution is more than their combined profits.
People who were facing any significant change in circumstance that would cause them difficulty paying their mortgage – such as losing their job – should ring their bank immediately.
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“Banks are responsible lenders and when assessing a loan application they apply higher ‘serviceability’ rates to see if you could still repay the loan if interest rates go up. So typically, there’s a buffer already built in for borrowers.”
“Anyone experiencing financial difficulty should contact their bank to discuss their options. The sooner you talk to your bank, the more likely they’ll be able to help. Options could include lengthening the term of your loan, to reduce the amount of regular repayments. In some cases, temporarily moving to interest-only repayments may also be an option.”
Bankers’ Association chief executive Roger Beaumont says the country’s banks are very conscious of the impact current economic conditions will have on many New Zealanders. Anyone experiencing financial difficulty should contact their bank to discuss their options.