Get new Code of Banking Practice – Bankers’ Association

Get new Code of Banking Practice – Bankers’ Association

The New Zealand Bankers’ Association has encouraged bank customers to have a look at the latest Code of Banking Practice which comes into force on 1 July. Now in its fifth edition, the Code provides a useful guide for customers and their relationship with their banks.

“The Code includes a whole lot of useful information about what banks will do for their customers. It covers things like getting credit, internet banking, and how you can protect your PINs and passwords.

“If you have a relationship with a bank, you need to know about the Code,” said New Zealand Bankers’ Association chief executive Kirk Hope.

The Code is reviewed every three years. “On the whole we found the Code is working well. We’re at the point where it gets updated to reflect good industry practice and to take into account new technology, rather than needing a major overhaul,” said Hope.

There are four main changes to the fifth edition:
• Mobile phone banking: The internet banking chapter has been updated to include the use of smart phones and mobile banking apps.
• Dispute resolution process: The dispute resolution process for customers has been clarified and reflects the fact there is now a range of dispute resolution schemes available to financial service providers. Currently, all NZBA member banks use the Banking Ombudsman Scheme.
• Accessibility: The Code is now available on all NZBA member bank websites as well as on the NZBA website. Print versions of the Code will continue to be available from bank branches.
• Wholesale customers: The Code has always focused on banks’ relationships with their retail customers. The new Code reflects this by expressly excluding wholesale customers from its target audience.

“The revised Code has been brought up to date to include innovations in banking services and is now clearly aimed at the retail customers it was always meant to help.

“It is one of the most comprehensive pieces of industry self-regulation operating in New Zealand. This industry initiative sets out at the very least what banks will do for their customers. It also complements more specific terms and conditions applying to particular products offered by banks,” Hope said.

NZBA introduced the Code of Banking Practice in 1992. All NZBA member banks agree to observe the Code as minimum industry standards. NZBA membership is open to any bank registered under the Reserve Bank of New Zealand Act 1989. Currently 13 banks are NZBA members.

The Code of Banking Practice is available at
http://www.nzba.org.nz/banking-standards/code-of-banking-practice/

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