New consumer website launched to support transparency and awareness of account switching

We’ve launched a new website to help banking customers better understand the switching process in Aotearoa New Zealand – part of industry work to to improve transparency and promote informed choice.

Ready to Switch went live in mid-June, and provides information about what switching is, how it works, and what customers can expect from their current and new bank when they switch. It also includes links to bank websites for customers who want to start the process.

The switching process has been in place since 2010, and is delivered by participating retail banks, with Payments NZ setting rules and standards.

Following the release of the Commerce Commission’s 2024 market study into personal banking services, Payments NZ convened an industry working group to explore improvements to switching. The new website is one of the early outcomes of this work.

In addition to launching the site, the working group has also introduced new reporting processes, which are now shared monthly with the Commission, and is exploring other functional improvements to the switching experience.

Payments NZ Chief Executive Steve Wiggins says the website is an important step toward raising awareness of switching among consumers.

“The switching process isn’t new – but many people don’t know it exists or how it works,” says Wiggins. “We hope this site will be a helpful first step for anyone thinking about switching their bank account.”

“We’ve worked with the banking industry to ensure the site is accurate, clear and easy to navigate. It provides consistent, independent information for consumers, while still encouraging them to engage directly with the bank they want to move to.”

While the new site has launched at the same time as industry-led developments in open banking, also led by Payments NZ through its API Centre, Wiggins notes the two processes are separate and distinct.

“An effective switching experience and secure open banking are both part of delivering greater competition and choice for New Zealanders. They’re independent workstreams, but both are here now, and as more consumers start to use them, we’ll see real momentum in the market.”

Visit the new site at www.readytoswitch.nz.

You can also find more information about the switching process on our website.

Question and answers about switching

What is switching?

The switching process makes it easy to move payment instructions, saved payees and account balances to a new bank.

It means banking customers don’t have to re-establish their direct debits and automatic payments, or set up saved payees again, when moving from one bank to another.

If they choose to close their account at their current bank, it also lets them easily move their account balance over to their new bank.

What does the switching process cover?

The switching process covers:

• Payment instructions, including direct debits and automatic payments
• Saved payees
• Account balances, if the customer chooses to close their account with their current bank.

What’s not covered?

Switching doesn’t include:

• Any payments coming into the customer’s bank account, such as salary payments or direct credits. Customers need to contact anyone making payments to them and provide their new bank account details.
• Recurring card payments (including credit cards).
• Home loans, credit cards, overdrafts or any other lending products.
  
  

How long does it take?

Once the customer’s new bank submits a switching request, their current bank will share the information authorised with the new bank within five business days.

From that point on, the new bank works to meet arrangements agreed with the customer, including meeting their chosen switch date.

Who actually delivers switching?

The switching process is delivered by participating banks in Aotearoa New Zealand, working directly with each other.

Payments NZ sets rules and standards to govern the process.

What rules and standards are in place for switching?

Payments NZ’s standards for switching include:

• A five-business-day service level agreement (SLA) for the current bank to provide information to the new bank
• Standardised forms and processes across banks
• Switching support teams at participating banks.

Are banks meeting the switching standards?

In April and May 2025, 99 percent of switches met the five-business-day SLA for the customer’s current bank to send information to the new bank.

96 percent of switches actually met this standard in three business days or less.

In all cases where switching took longer than five days, this was due to a customer-chosen future switch date.

How many switches are happening?

Payments NZ has received early reporting on the number of customers using the industry’s formal account switching process. At this stage, the data has been shared with our BECS management committee and is not being released publicly.

It’s important to note that this data only reflects use of the formal switching process. Many customers choose to move their banking relationships without using the switching process, so the numbers we have don’t represent the full extent of switching activity across the sector.

Why aren’t incoming payments covered?

Some switching processes overseas, including in the United Kingdom, include a redirection function for incoming payments.

However, in today’s environment where customers are at a greater risk of fraud and scams, as well as being able to benefit from further innovation within payments, a redirection service can be counterproductive:

• Fraud risk: Redirecting payments from closed accounts can create vulnerabilities, hindering efforts across the industry to identify and close mule accounts, an essential fraud control. 
• Innovation barrier: Redirecting payments can impact interoperability, create a barrier to entry for new banks, and break authorisation flows in open banking contexts.
• Customer delay: Redirection only defers the customer’s responsibility to update payment sources, increasing the length of the switching process and requiring additional customer action once redirection ends.

For these reasons, the Aotearoa payments industry is focussed on evolving the switching service alongside payments innovation.

What else is Payments NZ doing in response to the Commerce Commission’s recommendations?

Alongside the launch of the new switching website, we’ve worked with our industry working group to develop new internal reporting processes that track switching volumes and service timeframes across the industry.

As part of this work, banks now report monthly switching data to Payments NZ, including adherence to the five-business-day Service Level Agreement (SLA) for information transfer between banks. This data is shared with the Commerce Commission monthly.

The industry working group has also reviewed aspects of the switching process that could be improved. This includes addressing operational friction points and clarifying roles and responsibilities to improve customer experience.