Banks seek to control internet sites

An application to dictate terms on domain names is likely to be a test case for many other professional groups, reports MICHAEL FOREMAN.

The Bankers Association wants banks to be able to set up internet sites ending in .bank.nz - as long as it sets the rules on who can use such names.

The proposal to control access has alarmed Internet Society members as well as the Consumers Institute.

The association has prepared a detailed application to create the .bank.nz domain.

It will be a test case for an expected flood of similar applications from groups such as accountants, solicitors and doctors.

It also raises questions about the future shape of internet banking.

The association's nine member banks have applied to the Internet Society to create and moderate the new .bank.nz domain name, which would also allow banks to have @yourbank.bank.nz e-mail addresses.

The association said use of the .bank name would be open to any registered bank. There are 18 in New Zealand.

However some society members believe that the cost of complying with registration procedures designed for bricks-and-mortar banks could be a barrier to overseas online banks entering the New Zealand market.

"It's a tricky one," said Consumers Institute director David Russell. "To begin with, I don't think the banks should be attempting to control domain names - we have faith in the Internet Society.

"For the banks to decide who may or may not use a name is unacceptable.

"On the other hand, there are undoubtedly some shonky or crooked online banks out there that the New Zealand consumers should be protected from."

Mr Russell suggested a better arbiter of .bank.nz name allocation would be the Reserve Bank, which could set rules for online use.

But the Reserve Bank said yesterday that it had a relaxed attitude to moderation of the domain name as long as it referred to the registration process that it already controls.

"What this list will do is give us a positive ID on registered banks on the internet," said chief banking system manager Peter Ledingham.

He dismissed suggestions that the .bank branding power would eventually mean that New Zealanders would not trust financial institutions using other domain names.

"There are many New Zealanders who are already using a wide variety of overseas online financial institutions."

Jeff Mascarenhas, a member of the Bankers Association e-commerce group, which prepared the proposal, said all members supported the initiative. The Reserve Bank had been consulted, as had non-association registered banks, which either supported or did not have worries about the proposal.

He said the association was open to other suggestions on moderation and would administer any scheme in cooperation with the society.

The association had no intention of operating the computer technology necessary to administer the system, he said.

The society has now begun a discussion process, which may not be completed until the middle of next year.

It considered second-level domain name applications a serious matter. Once such domains were created, they were not likely to be removed, the society said.



The discussion process could develop into a test of internet democracy as the decision on whether the application goes ahead will hinge on a public e-mail vote on February 14.

It is understood that votes from any valid New Zealand e-mail address will be eligible.

Mr Mascarenhas rejected suggestions that the banks might mobilise their employees to carry the vote.

"The banks have no intention of influencing our employees or our customers on this issue.

"We want the right decision to be reached for the right reasons," he said.

"Obviously if we feel the vote is being rigged anyway, we will be concerned, as will the rest of the internet community."

Links


The Bankers Association proposal


Internet Society's second-level domain application process


An online discussion forum