- Together with the New Zealand Banking Association, New Zealand’s retail banks are working towards a new Confirmation of Payee system, which is one way they aim to reduce the number of payments made to fraudulent bank accounts and help people avoid making payments to the wrong account.
- In its own submission, the NZ Bankers Association, representing the major banks, said the increase in capital requirements were “a significant factor” in interest rates being higher on average for farm loans than for residential mortgages.
- “Rolling out confirmation-of-payee is not as simple as flicking a switch. Broadly speaking there are two main phases involved. First, we need to build a solution and ensure it works technically with our current payments system and complies with banks’ privacy and confidentiality obligations. Once we have that, banks then individually need to implement changes... Read more »
- The New Zealand banking sector says it now has a preferred provider for setting up confirmation of payee, a key part of its response to the burgeoning problem of scams.
- Beaumont said there was also a role for telecommunications companies, social media websites and search engines in helping combat scams. “To take the centre to the next level, we’ve asked the government for operational support by involving the police and other relevant agencies.”
- The New Zealand Banking Association (NZBA) also welcomed the changes, with chief executive Roger Beaumont highlight that the changes would allow banks to exercise flexibility and discretion to better meet customers’ needs, especially in emergency situations.
- New Zealand Banking Association’s revealed almost 30 percent more home loans were taken out from June to December 2023, than the previous six months.
- “We welcome the removal of overly prescriptive affordability assessment requirements because it should help fix the one-size-fits-all approach that treated all types of lending and borrowers the same. The change still means that consumers are protected, and lenders need to be responsible,” NZBA Chief Executive Roger Beaumont says.
- “What it means is it’ll go back to the way it was prior to these regulations, when banks could exercise discretion in determining whether a customer was suitable for a loan or not,” said chief executive Roger Beaumont.
