Westpac has announced it will be the first New Zealand bank to issue digital ID credentials for businesses.
The bank said this morning that once its new scheme rolls out, Westpac One Business customers will be able to show digital proof of their bank account when asked by customers.
The credentials will be stored in the Govt.nz app wallet.
To explain how its digital ID will work, a spokesperson used the example of someone buying a car from a dealer who banked with Westpac.
"After downloading the Govt.nz app wallet, the dealer can log in to Westpac One Business, choose an account and generate a QR code.
"The dealer scans the Westpac QR code in the wallet, then enters a code sent by text message. They now have a Westpac Business Bank Account credential, valid for 72 hours, to show the buyer as proof of the account."
They can also show it to other organisations for verification, including NZ Verify.
Westpac NZ chief data, digital and AI officer Russell Jones said the system would streamline verification processes for businesses and be more secure.
“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.
“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."
Jones said the bank would be "working hard" over the next few years to broaden the scope of its digital ID system.
"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."
“There’s an exciting future ahead, with more choice, convenience and customer control."
Jones said Wespac would share its experiences with other organisations rolling out similar systems.
"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."
Westpac is the third organisation accredited by the Government’s Digital Identity Services Trust Framework to issue digital ID.
The other two are technology and IT services company NEC New Zealand and the Government Digital Delivery Agency.
The New Zealand Transport Agency is also considering public feedback for the rollout of digital driver licences.
According to the Government's website, digital credentials will be available in the Govt.nz app wallet from October.
Credentials will be stored only on the devices users choose, with data not held in the cloud or in a Government or company database. It will work similarly to banking apps and services like Apple Pay and Google Pay.
"Your credentials stay encrypted, on your own device, under your control — even if your device is lost or stolen, no one can access them without your biometrics or PIN," the Government website reads.
Users can also choose what information to share when using digital ID.
"For example, to prove you’re over 18, you can share just that fact — without revealing your full date of birth, address, or photo ID.
"This is enforced by the Trust Framework’s rules, not left to individual providers to decide."
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