Banks respond to new online code

Banks pleased with revisions to Code of Practice

BNZ general manager, strategy and marketing, Blair Vernon says “no material changes” will be made to the bank’s terms and conditions as a result of the redrafted banking code.

“Prior to the revision we had introduced additional security to our internet banking channels, with NetGuard [two-factor authentication], which gives our customers the extra confidence to bank online, knowing that their transactions or identity will not be compromised,” he told Computerworld in an email.

“Our security measures exceed both the requirements of the previous Internet Banking section of the Code of Banking Practice as well as the newly revised version.”

BNZ does not see differential terms and conditions as competitive tools, Vernon says.

“Instead, our decision to introduce NetGuard was driven by our desire to provide safe and secure access to our internet banking services, and we believe it was the right thing to do for our customers.”

A spokeswoman for the National Bank says it doesn’t foresee the need to make any change either.

“Our central promise is — and always has been — that if you are a genuine victim of fraud, you will be reimbursed for any losses.

“Our policy — and the Conditions of Use sitting in behind that — [have] not changed as a result of the recent revisions.

“However, we are pleased with the outcome of the revision process which means that the Code of Banking Practice has now moved to be closer to our approach,” she says.

The ANZ may be expected to have a similar approach since it now owns the National Bank; however the spokeswoman could not contact ANZ representatives in time for Computerworld’s deadline.

Westpac has repeatedly advertised policies more tolerant of online customers than the old or new Bankers’ Association codes.

ASB head of group technology Russell Jones says “the code is a minimum standard and already our terms and conditions provide stronger protection for the customer.”

A revision of the terms and conditions in February this year made it clear that the bank will reimburse a customer’s losses as long as the customer has not participated in a deliberate fraud, he says.

ASB has put new security advice for customers on its website since the controversy over the code emerged.

It was, Jones says, the first bank to offer its customers the additional security of two-factor authentication.

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Tags WestpacbankingANZBNZasbnationalSecurity IDnzba

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