Westpac NZ launches online banking guarantee

28 August 2007

Westpac New Zealand launches online banking guarantee

Westpac New Zealand has today announced a comprehensive “promise to pay” guarantee to its consumer and business online banking customers, reassuring them they will never be left out of pocket in the unlikely event they are victim of online fraud.

With the introduction of the Online Banking Guarantee Westpac becomes the only bank in New Zealand that offers its customers full protection in the event of online fraud. The guarantee states:

At Westpac we are committed to protecting you from online fraud, and just as committed to preserving the ease and convenience of our online banking services. We are so confident in our systems and processes that, subject to our Terms and Conditions, we make you the following promise:

In the unlikely event that you fall victim to online fraud as a result of using Westpac New Zealand's online banking services, we will always reimburse, in full, all money taken from your account.

Head of E-Business Stu Woollett says Westpac has introduced the guarantee: “to reassure customers that we are one hundred per cent committed to protecting them from online fraud and to demonstrate the faith we have in our online security systems and processes.

“Internet banking is convenient and also rewarding for customers who can access some great interest rates via online products. We are making a promise to them that it is also very safe. We believe this stance is both appropriate and timely as there is currently heightened concern about levels of risk facing everyday savers and investors,” Mr Woollett said.

“We put a huge amount of resources into fraud prevention and believe our security systems and processes to be some of the best available. As well as sophisticated transaction tracking software, Westpac offers text alerts that can highlight suspicious activity on an account.

“It is our combined commitment to security that allows us to launch the Online Guarantee for Westpac customers.”

Westpac is supporting the guarantee with a simplification of its online banking terms and conditions.

“We’ve been concerned that confusion around responsibility, liability and security are undermining what is, in many respects, the way of the future for banking. Feedback we’ve had from customers is that some are not sure what they should be doing, not just to be safe but to feel safe,” Mr Woollett said.

“Westpac is making it clear about the simple steps that should be taken, and is then saying that if those steps are taken we will back our customers to the hilt.”

Mr Woollett noted concern about the difficulty faced by the average person having to maintain a full collection of up to date computer security applications.

“Westpac’s new terms and conditions make it simple and reasonable by stating that customers must not use online banking knowing their machine is infected with malicious software.”

Westpac’s Online Banking Guarantee, coupled with its re-vamp of online banking terms and conditions, address other concerns raised by the Consumers’ Institute and Internet New Zealand in relation to the banking industry’s Code of Banking Practice.

Critics of the Code have stated that provisions over password management place undue burden on internet banking users. Consequently Westpac has altered its terms to allow customers to store passwords in a secure password storage vault.

The Banking Code of Practice also suggests banks can request access to a customer’s computer in order to establish that conditions of the Code were being met in the event of a fraud. Westpac makes no such provision in its terms and conditions and has not intention of doing so.

“The Code sets a framework for the industry that member banks must operate within.

“Bank terms and conditions set out the specific detail of customer relationships and we believe we have created a benchmark with our commitments in favour of the online banking consumer,” Mr Woollett said.

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