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Speaker 1: And a crucial step towards reducing scams. Banks will introduce

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Speaker 1: a confirmation of payee system next month, to be fully

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Speaker 1: in placed by ester of next year. The system notifies

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Speaker 1: a customer whether the name and account they're paying to

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Speaker 1: match up or don't. Similar schemes have been successful in

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Speaker 1: Australia and the UK. New Zealand Banking Association Chief Executive

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Speaker 1: Roger Beaumont is with me now, good evening. Thanks for

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Speaker 1: your time, Roger.

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Speaker 2: Oh, thanks for having me, Francesca.

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Speaker 1: So how does this work, this new confirmation of payee system, Well.

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Speaker 2: What it does is simply tries to match whether your

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Speaker 2: account that you're paying money into matches the name on

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Speaker 2: that account, and it'll to you whether it's a complete

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Speaker 2: match or a partial match or no match whatsoever. So

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Speaker 2: it just is another level of security and comfort for

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Speaker 2: customers in terms of being confident of when they're paying

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Speaker 2: money away to someone.

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Speaker 1: Is it an instant mechanism when consumers make an online payment.

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Speaker 2: Yes, because it will happen in real time when you're

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Speaker 2: about to enter the deep, when you're entering the details

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Speaker 2: of who you're paying money who and the account number,

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Speaker 2: and it'll give you that it'll give you that feedback well, fantastic,

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Speaker 2: Well before you make the payment, okay.

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Speaker 1: So it's not like you make a payment and then

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Speaker 1: the bank's going to check check it all off, and

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Speaker 1: then they're going to come back to in process that

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Speaker 1: there's going to be no delay on payments.

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Speaker 2: Then no, because it'll be it'll be checking checking with

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Speaker 2: you that you're confident that that's the right match before

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Speaker 2: the payment is actually made.

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Speaker 1: How well will this protect consumers against scams?

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Speaker 2: Well, it will certainly help in the war against scams,

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Speaker 2: which are a real scourge on our society. But it's

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Speaker 2: really important to remember there is no silver bullet here, franchise.

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Speaker 2: There is no one thing that's going to stop scams altogether,

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Speaker 2: because scammers are tricky and clever and they will find

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Speaker 2: workarounds wherever they can. So it's really important that customers

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Speaker 2: are vigilant in terms of their behavior and think about

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Speaker 2: really care think ready carefully about who they're paying and

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Speaker 2: what they're paying for. But this is another level of

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Speaker 2: protection that will help them in that process.

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Speaker 1: Who drove action for this change, Oh.

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Speaker 2: Look at the industry has been working on it for

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Speaker 2: quite some time. This is quite a big piece of

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Speaker 2: work that the government also encouraged us to look at.

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Speaker 2: But the industry has worked collaboratively to install this across

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Speaker 2: the teen retail banks so that they can work together

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Speaker 2: on this for customers.

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Speaker 1: Can I be honest with you, Roger kind of feel

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Speaker 1: like this would have been a sensible thing to have

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Speaker 1: in place earlier, you know, when we started doing online banking.

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Speaker 1: I'm surprised that someone didn't think about it, but obviously

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Speaker 1: we didn't have the technology then.

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Speaker 2: Yeah, and look, we have moved at pace to implement

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Speaker 2: this where we're working on a very very tight time

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Speaker 2: frame to get this live as quickly as possible. And

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Speaker 2: you know, we'll be one of a hand full of

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Speaker 2: countries around the world that have this level of technology.

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Speaker 2: So it's not commonplace. It's actually limited in the number

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Speaker 2: of jurisdictions that actually have it in place.

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Speaker 1: And you know, banks are hoping to induce the system

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Speaker 1: next month. It's going to be fully in priced, but

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Speaker 1: fully in place by Easter next year. What does that mean.

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Speaker 1: It's sort of it's sort of what's happening in that

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Speaker 1: in that time frame.

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Speaker 2: Yeah, it's being phased, and that's because banks need to

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Speaker 2: do proper testing of the systems and technology and make

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Speaker 2: sure that it works appropriately, and they have to make

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Speaker 2: changes to each of the way his customers interact with

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Speaker 2: their banks, so they'll have to do their online banking,

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Speaker 2: they'll have to do mobile banking apps, and they'll have

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Speaker 2: to do in branch and in customer. All as quite

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Speaker 2: unique ways of providing the service. So it's quite complex

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Speaker 2: and it's important that they get it right. It's a

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Speaker 2: much safer and appropriate way to have it. Stagger it

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Speaker 2: and do it when that confident.

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Speaker 1: Thank you so much, Roger. That was New Zealand Banking

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Speaker 1: Association Chief executive Roger Beaumont with.

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Speaker 2: Me for more from hither Duplessy Allen Drive. Listen live

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