What is it?
A proxy identifier enables bank accounts to be pinpointed without the bank account details. It uses, for example, a mobile number or email address to access the account enabling smoother transactions.
While many financial institutions currently offer proxy identifier solutions when transacting with another account holder at the same institution, there is no ubiquitous industry-wide solution available. We are working with an industry working group to consider what an industry proxy solution could look like, how it might operate and how it would better enable payments and other services.
Why are we looking at it?
We can’t remove complexity from payment systems, but we can move them away from the end users. There is a global trend to simplify the customer experience associated with entering long strings of numbers. For example, innovation in card payments is starting to remove the requirement for customers to enter their card number when loading a payment. In other jurisdictions there has been a surge in the use of easy proxy identifiers, such as a payee’s mobile phone number being entered instead of the full bank account number.
A global trend of innovation and simplification aims to deliver a simple, improved and consistent customer experience. A resulting opportunity exists for the industry to develop an efficient and interoperable approach to establishing a shared proxy identifier solution that is right-sized for the New Zealand market, and that will allow customers to easily send and receive money.
Where this work is currently at
The proxy identifier working group have recently been considering and assessing a range of possible technical solution delivery models for the proxy service. A preferred option has been chosen and the working group have recently completed a deep dive into that model.
That work has resulted in a recommendation from the group which favours a centralised repository as the preferred technical solution.
The recommended next steps are to develop a technical blueprint that clearly sets out a business description of the model and to test market direction and demand.
Contact us if you’re interested in finding out more about how you can join these workshops.