Payments NZ Launches Tool to Simplify Switching
As part of the industry’s efforts to improve awareness and transparency, a new website has been launched to help banking customers understand the benefits of switching.
“The switching process isn’t new, but we acknowledge that more New Zealanders need to know what it does and how to access it,” says Steve Wiggins, Chief Executive of Payments NZ.
“We hope the new site will provide a resource the industry can build on to collectively raise awareness of switching, by letting banking customers know there’s a process in place that makes it easy.
“As consumers get more familiar with the switching process and open banking offerings, we’re confident that they’ll be better informed and more empowered to make choices that work for them.”
The launch is one of several industry-led initiatives aimed at boosting competition in the sector, following increased government pressure for reform.
Government Pushes for Greater Banking Competition
“Improved competition is a top priority for this Government. When competition is working well, New Zealand businesses – both big and small – can thrive. This has knock-on benefits for consumers, including greater choice and lower prices in key sectors like fuel, groceries, and banking,” says Minister for Commerce and Consumer Affairs Andrew Bayly.
The Commerce Commission’s 14-month competition study into personal banking services concluded last year. ComCom found that New Zealand’s four largest banks —ANZ, ASB, BNZ, and Westpac —don’t face strong competition.
The Government accepted several of the Commission’s recommendations, including a call for clearer consumer tools and stronger regulatory oversight. It also directed the Council of Financial Regulators to monitor progress and hold banks accountable for improving competition.
The Ready to Switch site went live in mid-June. It provides information about what switching is, how it works, and what customers can expect from their current and new bank when they switch. It also includes links to bank websites for customers who want to start the process.
How the Bank Switching Process Works
The website helps customers navigate the formal bank switching process, which simplifies moving payment instructions, saved payees, and account balances to a new bank. It excludes incoming payments (like wages), recurring card payments, and lending products.
Once a switching request is submitted, the current bank must transfer authorised information to the new bank within five business days. Most switches are completed faster. The process is governed by Payments NZ’s rules, with standardised forms, service level agreements, and switching teams across banks.
Incoming payment redirection isn’t included due to fraud risks and interoperability concerns. While data on formal switching volumes isn’t public, participating banks now report monthly metrics to Payments NZ and the Commerce Commission. The industry is also reviewing friction points to enhance the customer experience further.
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