New Zealand Issue Best Practices Guidelines for Banks

The guidelines were developed in consultation with the FMA and build on the banking industry’s work following the 2018 conduct and culture review.

The NZBA (New Zealand Bankers’ Association) launched guidelines to help banks better serve customer needs.

The new guidelines were developed by NZBA member banks in consultation with the FMA (Financial Markets Authority), and reflect the FMA’s expectation that banks serve customer needs with highest industry standards.

The NZBA said in a statement that the guidelines sets out six commitments that banks make to their customers, and how they will meet those commitments, including how banks will:

• Treat their customers fairly
• Recognise and prioritise customer interests
• Give customers clear, concise and effective information
• Design and provide products that meet customer needs
• Provide good customer care
• Identify, fix and learn from their mistakes.

The bankers’ group said the guidelines are designed to help bank staff deliver good customer outcomes, and build on the banking industry’s work following the ‘Bank Conduct and Culture Review’ in 2018, which identified the six areas as requiring prioritising customers by banks.

“Customers are at the heart of banking and it’s important for banks to be clear on how they can best meet their customers’ needs,” NZBA chief executive Roger Beaumont said, and added:

“We worked with our member banks to develop these guidelines. We also consulted the FMA. In working closely with these stakeholders, we think we’ve come up with practical guidance in clear language that will help banks continue to deliver the good customer outcomes we all expect today.”

The Banking Ombudsman Nicola Sladden commented, “I see these guidelines as a positive step. They support banks to meet their obligations under the Code of Banking Practice, and achieve better outcomes for their customers.”