Payments NZ chief executive Steve Nichols says banks will now help people who want to switch banks, assisting with the transfer of direct debits, direct credits and other areas affected in the process.
Previously when customers wanted to shift their accounts from one bank to another the most time consuming task was the process of transferring over payment authorities.
Moving payment authorities like automatic payments and direct debits not only requires help from the customer's new bank but also relies on the co-operation of the old bank to ensure that nothing is missed.
Nichols says the new rules compel banks to work together to transfer information from one bank to another to make the change seamless for the consumer.
The governance of New Zealand's bank to bank payment clearing and settlement system, was transferred from the New Zealand Bankers' Association (NZBA) to Payments NZ, a new company, in December.
Payments NZ is responsible for setting and overseeing the rules and standards governing the way payment instructions are exchanged and settled and reviewing payments system policies and procedures.
