Banks are working to help customers experiencing economic abuse, says the New Zealand Bankers’ Association today ahead of International Economic Harm Awareness Day on November 26th.
Economic abuse is a form of family violence that can affect anyone, regardless of their personal circumstances or background and, like other forms of family violence, it predominantly impacts women.
“Economic abuse is a serious problem, and it’s often hidden. Talking about it is the first step to eliminating its impact,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
“Banks play a part in helping to identify instances of economic harm. They train staff to recognise signs of potential economic harm while being sensitive to customers’ situations and wishes.
“Depending on the circumstances involved, banks can also offer help to customers experiencing economic abuse. That may be through helping to close joint accounts and looking at ways to manage joint debt. They may also be able to communicate with the other party where protection orders are in place.
“These cases are often very sensitive and complicated by the bank’s customer obligations to both domestic partners who may have joint accounts, home loans and credit cards. Joint products usually need the consent of both customers to make any changes. Issues can arise when one party refuses consent.
“Banks balance the need to treat these cases with the utmost sensitivity, while meeting their legal and regulatory obligations, including customer confidentiality and privacy, and consumer lending laws.
“If you or someone you know is experiencing economic harm, it’s a good idea to reach out to the bank for a confidential chat about how they can help.”
ENDS
“The hubs trial is designed for small communities that no longer support bank branches due to lack of customer demand, or never had them. Stratford still has a bank branch. Locals who prefer face to face banking may wish to consider switching to that bank. Switching is easy and quick, with the new bank taking care of everything, including transferring across any recurring payments.”
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“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,” CEO Roger Beaumont said.
Introduction of the tool has also been opposed by banks, with bank lobby group the New Zealand Bankers’ Association maintaining “there’s a real risk of adverse customer impact” if the RBNZ introduces a DTI tool.
Bankers’ Association Chief Executive Roger Beaumont says their research indicates about two-thirds of Kiwis are opposed to the concept of open banking, or don’t understand it. He says that means there’s an obligation on the Government, who are setting this up, to educate people on what it means.
Beaumont warned that the weight of other banking regulation being imposed by government and the Reserve Bank meant that banks would “need time to enable quality products that will excite New Zealand 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.”
New Zealand Bankers’ Association chief executive Roger Beaumont said it is important to get the open data sharing right for consumers and they needed time to implement. “There may also be lessons from other countries the government could take into account as it develops the legal framework.”
Roger Beaumont from the New Zealand Bankers’ Association said it’s “really important to get it right because if you get it wrong there are some serious implications”.