Westpac first New Zealand bank to issue digital ID

Westpac has become the first bank in New Zealand accredited to issue digital identity credentials under the Government's Digital Identity Services Trust Framework. The accreditation allows the bank to issue credentials through the Govt.nz app wallet.

Business customers in New Zealand will be able to receive digital credentials that can be shared with customers and other third parties as proof of bank account details. The system is being introduced first for Westpac One Business customers.

The move places Westpac among the first organisations in the country able to issue credentials under the framework. It says it is only the third organisation to reach the accreditation stage.

How it works

A business customer logs in to Westpac One Business, selects an account and generates a QR code. The customer then scans the code through the Govt.nz app wallet and enters a code sent by text message.

This creates a Westpac Business Bank Account credential that remains valid for 72 hours. The credential can then be shown to a buyer or another organisation that needs to verify the account.

The credential can also be used through verification platforms including NZ Verify. Westpac says the arrangement is intended to give payers greater confidence that money is being sent to the correct account.

One example is a vehicle purchase, where a buyer may want proof that a dealer's nominated account belongs to that business. In that case, the dealer could present the digital credential rather than send a bank statement or other document.

"This means businesses don't need to download a bank statement, redact information by hand or send documents using less secure methods such as email - saving them time and reducing the risk of fraud and scams," said Russell Jones, Chief Data, Digital and AI Officer at Westpac.

"We know trust and control are very important to New Zealanders when sharing personal information online. Digital ID provides a modern, trusted and simple way to share it while keeping you in control.

"Digital ID and its benefits have been talked about for a long time, but it needs positive action to make it a reality. We've invested heavily to become the first bank and only the third organisation to reach this milestone because we're keen to help lead the rollout."

Banking use

The accreditation marks an early banking use case for New Zealand's wider digital identity framework. For banks, the immediate application is account verification, where businesses are often asked to provide evidence of ownership before receiving payments.

Traditional methods can involve sending statements, screenshots or manually edited documents, all of which may expose more information than necessary. A time-limited credential limits the information shared to the specific proof being requested.

Westpac says teams across the bank worked to secure the accreditation. New Zealand technology company Mattr supported the rollout.

"Teams across the bank have worked hard to make us the first to gain this government accreditation, and we look forward to helping customers save time and effort from today," said Jones.

"We're also grateful to Kiwi-based tech solutions company Mattr for their expertise and insight in supporting us on the rollout."

Broader plans

Westpac says this launch is a first step and expects to use digital credentials in more parts of banking. One possible area is online verification for retail customers, including account opening and loan applications.

In those cases, customers could share a digital credential instead of supplying physical copies of sensitive identity documents. That would extend the same model now being used for business bank account proof into consumer banking processes.

Jones said wider uptake across industries would be needed if digital identity systems are to become routine in everyday transactions. He pointed to sectors including banking, hospitality and telecommunications, alongside local and central government.

"We'll be working hard over the coming years to broaden the scope of digital ID. For instance, rolling out credential issuance via the Westpac One online banking platform will simplify online verification for our retail customers, allowing them to apply for loans or open new accounts by sharing digital credentials rather than physical copies of sensitive documents.

"Digital ID's potential goes well beyond banking. Imagine the convenience of having a digital version of your driver's licence, Kiwi Access Card or passport in your phone.

"Everything from proving your age to setting up utilities to travelling overseas could be simplified without compromising on security.

"There's an exciting future ahead, with more choice, convenience and customer control.

"At the same time, digital ID will only succeed if there's large-scale adoption of credential verification. That means a wide range of sectors, including banking, hospitality and telecommunications, working with local and central government to make digital ID part of the everyday customer experience.

"As we continue to invest in our rollout, we're keen to share our experiences with organisations at the start of their digital ID journey."