Payments NZ launches interbank payments switching website ahead of open banking

Payments NZ has launched a website showing how consumers can move some payment instructions between banks.

The website advertises a facility in development between banks since last year using APIs (application programming interfaces) to allow customers to switch payment instructions on their main transactional account from one Payments NZ member banks to another.

These include automatic payments and direct debits.

The move addresses research showing concern over moving such payments has been an impediment to consumers changing banks.

However, other payments - for example, recurring card payments, direct credits and incoming payments such as wages and salaries - are not included.

Consumers moving their account to a new bank will need to instruct payors to send payments to the new account. They will also need a credit card from the new bank on which to load bill payments.

Loans, such as mortgages, and overdrafts are also excluded, and will have to be paid off at the old bank before the account can be closed.

Customers wanting records of their account transaction and history will need to ask their old bank for them before closing the account. 

The participating banks are ANZ, ASB, BNZ, Westpac, SBS, TSB, Kiwibank, Heartland, The Cooperative Bank, ICBC, and Bank of China.

The switching facility falls a long way short of the open banking promised "by Christmas" by Commerce and Consumer Affairs Minister Scott Simpson.

The government in May designated banking under the Consumer and Product Data Act, requiring banking data holders to provide accredited requestors with data and regulated data services.

Under the Act, consumers can consent to have their data shared with trusted third parties, such as fintechs.

Announcing the designation, Simpson said he foresaw fintechs using data access to develop "innovative products and services such as faster payments, speedier mortgage comparisons, and money-saving applications."