Flipping the switch: Why it's easier than ever to switch banks

So you’ve been sifting around on CreditSimple.co.nz and seen some sweet deals, but you’re thinking it’s wayyyyy too hard to switch banks, right? Errr, pull up a chair and sit down for a moment. Actually, switching banks is easier than ever.

Thanks to internet banking, our bank accounts capture loads of information – think about how many automatic payments or preloaded payees you have on your account (mum, dad, utilities, the local pie shop and so on) – and having to reload all of that is a major barrier. Or at least it used to be.

In 2010, New Zealand banks agreed on a set of rules about how they would co-operate when a customer was lured by a rival. They tweaked those rules in 2012 and now it’s easy as … well, it’s easy as.

Banks now co-operate freely with each other when customers switch. An organisation called Payments NZ governs this, and sets and oversees the rules and standards around payments to enable innovation as well as strong self-regulation. (Payments NZ is owned by eight New Zealand banks.)

As a customer, all you have to do is tell your new bank that you want to switch information from your old one, fill out a form and sign it, and your old bank has to hand over all your details to help your new bank set you up. You (almost) don’t have to do a thing.

The information in this blog post is general in nature and does not constitute personal financial or professional advice. It is not intended to address the circumstances of any particular individual. We do not guarantee the accuracy and completeness of the information and you should not rely on it. Before making any decisions, it is important for you to consider your personal situation, make independent enquiries and seek appropriate tax, legal and other professional advice.