Government moves to introduce open banking

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Forums › Finance and wealth management › Government moves to introduce open banking

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sen8or

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#2994401 10-Nov-2022 15:36

I am amazed at the figures claimed in the article, $1.9-2mio per day saved?

How on earth were those figures reached?

We already have a fairly competitive banking system with 4 major trading banks (ANZ, BNZ, Westpac and ASB) as well as 2nd tier banks (Kiwibank, SBS, Heartland, TSB) and then the likes of credit unions, smaller banks like HSBC and other parties all jockeying to get more customers.

Sorry, I just don't buy the hype that this will save kiwis a fortune. We don't shift banking around on a daily basis (or even a annual basis like you might internet providers), as above, we are well services by multiple organizations and multiple entity sizes, something to suit most and those with things like mortgages are already likely on good deals in regards to fees etc

As for the political comment, a little on the nose perhaps, but this has been politicized as both a diversionary tactic (look over there, nothing to see over here) and for the incumbent Govt to be seen to do something about "excess profits", when excess is such subjective measure. I doubt they'll be moaning about the "excess taxes" they are receiving on said "excess profits", just saying......

EDIT

Bugger, lost the link to the article (was quoting someone from Simplicity) where I got the $1.9-2mio per day in savings

mattwnz

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#2994404 10-Nov-2022 15:43

That that to the $400 + mill NZs are overpaying for food with supermarket excess profit alone, then many markets are not working for NZ. Then look at other sectors of the economy such as the building materials market. Then insurance. Lack of real competition. Too of NZs largest banks were allowed to merge a number of years ago which didn't help IMO.

MikeAqua

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#2994429 10-Nov-2022 18:15

mattwnz:

That that to the $400 + mill NZs are overpaying for food with supermarket excess profit alone,

Sounds like an impressive number but per capita it's about $80 pa.

Not worth the amount of noise that has been made.

Something I've noticed is very little of the reporting on profits uses meaningful relative terms like profit/sales, profit/COGS profit/assets, profit/market-capitalisation or IRR.

$x million makes a very clicky headline but on its own it's meaningless info.

Mike

Handle9

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#2994434 10-Nov-2022 18:28

sen8or:

I am amazed at the figures claimed in the article, $1.9-2mio per day saved?

How on earth were those figures reached?

We already have a fairly competitive banking system with 4 major trading banks (ANZ, BNZ, Westpac and ASB) as well as 2nd tier banks (Kiwibank, SBS, Heartland, TSB) and then the likes of credit unions, smaller banks like HSBC and other parties all jockeying to get more customers.

Sorry, I just don't buy the hype that this will save kiwis a fortune. We don't shift banking around on a daily basis (or even a annual basis like you might internet providers), as above, we are well services by multiple organizations and multiple entity sizes, something to suit most and those with things like mortgages are already likely on good deals in regards to fees etc

As for the political comment, a little on the nose perhaps, but this has been politicized as both a diversionary tactic (look over there, nothing to see over here) and for the incumbent Govt to be seen to do something about "excess profits", when excess is such subjective measure. I doubt they'll be moaning about the "excess taxes" they are receiving on said "excess profits", just saying......

EDIT

Bugger, lost the link to the article (was quoting someone from Simplicity) where I got the $1.9-2mio per day in savings

It'd be nice if you made the effort to be at least marginally informed before going on a political rant.

This isn't something that has been pulled out of a hat, the Consumer Data Rights work to enable this has been worked on since 2020 with widespread industry consultation. It aligns New Zealand banks with Australia. The government signalled at the start of the year that they would be introducing the legislation this year.

freitasm

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#2994443 10-Nov-2022 19:06

@sen8or:

As for the political comment, a little on the nose perhaps, but this has been politicized as both a diversionary tactic (look over there, nothing to see over here) and for the incumbent Govt to be seen to do something about "excess profits", when excess is such subjective measure. I doubt they'll be moaning about the "excess taxes" they are receiving on said "excess profits", just saying......

I think this was already well explained in the reply above mine.

I asked to leave politics to the proper sub-forum so I am locking you out of this discussion.

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Handle9

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#2994472 10-Nov-2022 22:02

johno1234:
For a start there's no globally consistent and unique ID for bank accounts.

There is, it’s called an IBAN.

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Groucho

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#2994646 11-Nov-2022 11:58

sen8or:

Its not like its hard to switch banks or shop around now, sure, it can require that a consumer has access to transactional information but with virtually everyone on internet banking, access to this sort of information is already at our fingertips and is required as part of normal lending criteria now anyway.

I'm sure there is more to it but as a core basic, bank account number portability will be the cliché game changer.

In our business we have about 80 clients who pay our automatic invoicing via monthly and some annual automatic payments. It would be an absolute nightmare if we changed our business bank account and getting all those clients to update their AP's in a timely manner. As an example when the GST rate changed from 12.5% to 15% it took about two years for everyone to automatically pay the correct amount.

Account number portability would mean payment from those client AP's would follow the account number, not the bank. Just like someone phoning my 021 number will find my phone connected to the 2degrees network.

decibel

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#2995429 13-Nov-2022 13:16

Groucho:

sen8or:

Its not like its hard to switch banks or shop around now, sure, it can require that a consumer has access to transactional information but with virtually everyone on internet banking, access to this sort of information is already at our fingertips and is required as part of normal lending criteria now anyway.

I'm sure there is more to it but as a core basic, bank account number portability will be the cliché game changer.

In our business we have about 80 clients who pay our automatic invoicing via monthly and some annual automatic payments. It would be an absolute nightmare if we changed our business bank account and getting all those clients to update their AP's in a timely manner. As an example when the GST rate changed from 12.5% to 15% it took about two years for everyone to automatically pay the correct amount.

Account number portability would mean payment from those client AP's would follow the account number, not the bank. Just like someone phoning my 021 number will find my phone connected to the 2degrees network.

Yes, this will be very convenient for many people but saving over a million dollars a day?

I find that an exaggeration.

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