E-Banking-T&Cs: Updated 30 November 2025

Electronic Banking Terms & Conditions

Effective 30 November 2025

Important

• Southland Building Society operates under the brand “SBS Bank”. The name of the registered bank is Southland Building Society

(referred to as “the Bank”).

• These Terms and Conditions (which can be amended or replaced from time to time) apply in addition to the Bank’s General Terms and

Conditions, and any specific terms and conditions, applying to your account(s) with the Bank. Copies of the specific terms and conditions

for your account(s) with the Bank may be obtained from our website (sbsbank.co.nz), during Business Hours from any of our Branches

or by calling our Contact Centre on 0800 727 2265, or outside New Zealand on +64 3 211 0700.

• In the event that there is any inconsistency between these Terms and Conditions and any other terms and conditions applying to

your account(s) with, or any service provided by, the Bank, these Terms and Conditions will prevail to the extent of that inconsistency.

• By using any of the Bank’s Electronic Banking Services you agree to comply with these Terms and Conditions.

• Some of the functionality of the Electronic Banking Services is only available for Nominated Accounts and is not applicable to Credit Card

Accounts (particularly payment services).

• Please read these Terms and Conditions carefully. We are happy to explain anything to you that is not clear.

1 Electronic Banking Security

1.1 You should take care when selecting your Password(s) and Mobile

Banking App PIN(s) and you must comply with the Passwords and

Pins section of our General Terms and Conditions.

1.2 Do not use the same Password(s) or Mobile Banking App PIN(s)

that you use elsewhere.

1.3 In cases where you have forgotten your Password or Mobile

Banking App PIN, you can arrange in your security settings for

your access to the Electronic Banking Services to be reset if you

have registered for Second Factor Authentication. To do this you

need to:

a. Select either ‘Reset Password’ (for Internet Banking), or

‘Forgot PIN’ (for the Mobile Banking App) from the login

screen and follow the prompts.

b. Enter the SMS Code sent to your registered mobile number

before setting your new Password or Mobile Banking App

PIN and logging in.

If you are not set up for Second Factor Authentication, do not

receive an authentication code or are unable to successfully

complete the password reset process, you will need to visit

any of our Branches or call our Contact Centre on freephone

0800 727 2265, or outside New Zealand on +64 3 211 0700,

during Business Hours to reset the relevant security settings.

1.4 You have a responsibility to exercise reasonable care to prevent

unauthorised access to the Device that you use to access our

Electronic Banking Services. For example, this includes:

a. Not leaving your Device unattended and logged into our

Electronic Banking Services;

b. Not recording your Password or Mobile Banking App PIN

including using the password storage options provided within

internet browsers;

c. Locking your Device or taking other steps to stop unauthorised

use of our Electronic Banking Services; and

d. Notifying us as soon as practicable if your Device is lost or

stolen.

1.5 You should regularly examine your transaction history to identify

any instances where Electronic Banking Services have been

used without your authority. You must notify us immediately

if you identify any unauthorised transactions.

1.6 Your Password, Mobile Banking App PIN or SMS Code identifies

you and allows you access to the Electronic Banking Services.

The Bank is not required to take any further steps to verify that

the person using your Password, Mobile Banking App PIN

or SMS Code is you, and they will be allowed access to the

Electronic Banking Services regardless of whether or not you

have given your permission.

1.7 You must take reasonable care when accessing our Electronic

Banking Services to ensure that your Password and Mobile

Banking App PIN are not seen by or disclosed to anyone else.

1.8 You must change your Password, Mobile Banking App PIN and

any other security information promptly if anyone else does or

may know it. You must also notify the Bank in accordance with

“Notification of Loss, Theft or Unauthorised use of your Password

or PIN” section.

1.9 You should not open attachments or run software from untrusted

or unknown sources on any Device that you use to access our

Electronic Banking Services. Remote software allows someone

to access your device from afar. We will never ask you to install

this kind of software or give us access to your device. You must

not install remote access software on your device. And you must

not give anyone you do not know access to your device. If you’re

ever asked to do this by us or anyone claiming to be us, you must

report it immediately.

2 Notiﬁcation of Loss, Theft or Unauthorised use of your

Password, Mobile Banking App PIN

2.1 You must notify the Bank immediately when:

a. you know or suspect that someone else knows your Password

or Mobile Banking App PIN;

b. you discover or suspect an unauthorised use of your Password

or Mobile Banking App PIN has occurred; or

c. your transaction history contains any instances of unauthorised

use or errors.

2.2 Please contact the Bank immediately if your Mobile Device or

your mobile phone containing your registered mobile number is

lost or stolen. We can then arrange for the Mobile Device or the

registered mobile number to be either temporarily deactivated

until you relocate it or deregistered to prevent any unauthorised

use of our Electronic Banking Services.

2.3 We recommend that you record all receipt numbers, payment or

transfer reference numbers that are issued to you by any of the

Electronic Banking Services to assist in following up with us if you

identify any issues when checking transactions against your

statements.

2.4 During Business Hours, call us immediately and we can help

you reset your login details including your Password and Mobile

Banking App PIN.

2.5 You can cancel your Electronic Banking Services access during

Business Hours at any of our Bank Branches or by calling our

Contact Centre on 0800 727 2265, or outside New Zealand on

+64 3 211 0700.

E-Banking-T&Cs: Updated 30 November 2025

3. Payment

3.1 When you set up a payment using Electronic Banking Services,

you authorise us to act in accordance with, and acknowledge that

we will rely on, those instructions. You cannot set up any payment

from any Credit Card Account.

3.2 Subject to compliance with these Terms and Conditions, payments

can be requested to be made on the same day or on a future date

when you enter the payment details.

3.3 If you have requested us to make a same day payment to an

External Account, we will automatically debit the payment from

your Nominated Account. We will endeavour to send any same

day payments to External Accounts every 30 minutes between

9am and 9.30pm.

3.4 Future-dated payments will be automatically debited from your

Nominated Account on the date requested in accordance with

your instructions.

3.5 With the exception of future-dated payments, electronic payments

authorised after 9.30pm, to External Accounts will be debited from

your account on the day of authorisation but may not be sent to

the receiving bank until the next day.

3.6 Payments between any two of your Nominated Accounts will

be debited and credited immediately (unless specified that the

payment to be made will occur on a future date). This includes

Nominated Accounts for different entities which you manage but

does not include any payment to a Credit Card Account, which

will be processed as an External Payment.

3.7 A payment is irreversible once the instruction to make the

payment has been completed using our Electronic Banking

Services (unless the payment to be made will occur on a

future date).

3.8 It is your responsibility to ensure that there are enough

funds in your Nominated Account(s) to meet any payments

that you

authorise. Instructions for payments will not be actioned if there

are insufficient funds available in your Nominated Account.

3.9 We will endeavour to make the payments you request, although

we accept no responsibility or liability for any delay, omission or

refusal to make any or all of the payments, or for late payment.

In particular, we accept no responsibility or liability for the

accuracy of the information you supply to us when setting up,

changing, or deleting payment instructions.

3.10 All payment instructions received from you will be subject to any

other arrangements you may have with us in relation to your

Nominated Account(s).

3.11 In the event of a future-dated payment not able to be made

on the due date for any reasons referred to in these Terms and

Conditions, we will attempt to complete that payment request for

the following 3 days. Following that period arrangements for that

payment will become your sole responsibility.

3.12 We may in our absolute discretion conclusively determine the

order of priority of payments and transfers requested pursuant to

any payment instruction drawn on a Nominated Account. A limit of

$10,000 per customer per day applies to the total of all payments

initiated using the Electronic Banking Services. Payments in

excess of your daily limit may not be actioned by us.

3.13 Any payment instruction given by you is irrevocable, notwith-

standing your death, Bankruptcy or other revocation of this

authority, until actual notice of such event or revocation is

received by us, subject to these Terms and Conditions.

3.14 When you initiate certain payments through our Electronic

Banking Services, you may be presented with enhanced

scam warnings. These warnings are designed to help you

pause and review key details before proceeding with your

payment. By using our Electronic Banking Services, you

agree to receive these enhanced scam warnings. You will

be required to respond to the warnings before making

payment. Any data collected through these warnings will

be handled in accordance with clause 10 and our ‘Privacy

Statement’ in our General Terms and Conditions.

3.15 We are authorised to advise your payees of your name,

and account number if requested by them in respect of a

payment authorised by you.

3.16 For payments to Approved Payees the Bank relies on the account

numbers and required reference details provided from time to

time by the Approved Payee. The Bank cannot guarantee either

at the time payment instruction is received or when the payment

is made that these Approved Payee details remain current and

are correct.

3.17 The timing of receipt of any payment sent by us will depend on

the frequency that the recipient’s bank processes its payments.

This may occur less frequently than the rate at which we send

payments (either during the day or overnight).

4. Conﬁrmation of Payee

4.1 Confirmation of Payee (“CoP”) is a name and account checking

service used by participating financial institutions across New

Zealand.

4.2 CoP checks are used for New Zealand based payments but do

not apply to all payment such as where the payee’s bank is not

a participant in the CoP service or where the payment type is

not covered by the CoP service. Further information about which

payments you can use the CoP check for can be found at

www.sbsbank.co.nz/confirmation-of-payee.

4.3 The CoP check will be used when:

a. Setting up a new payee using our Electronic Banking Services;

b. Editing an existing payee; or

c. Making a one-time payment to an unsaved payee.

4.4 There are a few instances when you will not be prompted to run a

CoP check, these are when:

a. You’re making a payment to a payee that is already saved; or

b. You’re making a payment to an overseas bank account; or

c. You’re making a payment to an Approved Payee.

4.5 CoP is a pre-payment check that is carried out using secure

software. It provides a check to see if account holder names and

account numbers of the payee match before making a payment.

You will then be provided with a response message that indicates

whether the name matches or not. CoP checks are only available

through financial institutions participating in CoP, so there may be

instances when you cannot check a payee’s details.

4.6 To make a payment to a joint account, you will need to provide

at least one of the names of the account holders exactly as it

appears on their account.

4.7 To make a payment to a business, you will need to provide the

name of the business exactly as it appears on their bank account.

4.8 If a CoP check can be carried out, the secure software will send

you a response message. Further information around the different

types of response messages and what you should do about

them can be found on our website at www.sbsbank.co.nz/

confirmation-of-payee.

4.9 The response messages do not block a payment, they just

show if the payee’s account details are correct or not. It is your

responsibility to determine whether you want to proceed with

making a payment. If the response says the payee’s details do

not match exactly or cannot be checked at that time, the Bank

will not be liable if you still proceed with the payment and suffer

a loss as a result. As set out in clause 3.9, we may also not be

liable if you get a match, but the payee’s account details you

entered were incorrect or you have been the subject of a fraud.

Further information can be found on our website at www.sbsbank.

co.nz/confirmation-of-payee

4.10 It is your responsibility to ensure we hold correct and up to date

personal details on your behalf to enable your account details to

be checked. We will no longer accept initials or a nickname for

your account details – you will need to give us your first and last

names. You can always contact us to understand the names that

are on your account.

4.11 Only account holder names and bank account numbers are

collected and processed through the CoP service to perform

CoP checks. The service uses data encryption without storing

any personal information and is built to comply with the Privacy

Act 2020.

5. Multi-payments

5.1 Within Internet Banking, you can set up and manage Multi-pay-

ments and create templates for Multi-payments (the latter being a

preset combination of payments to a number of accounts which

can then be copied to set up new Multi-payments).

E-Banking-T&Cs: Updated 30 November 2025

5.2 The terms outlined in clause 3 above apply to Multi-payments

subject to any modification outlined in this clause 5.

5.3 Multi-payments cannot be set up to reoccur and can only consist of

payments from one Nominated Account. You can set up separate

Multi-payment and templates for different Nominated Accounts.

5.4 You can import either Multi-payments or templates in Comma

Separated Value (CSV) file format.

5.5 You can maintain (both edit and delete) future dated Multi-

payments in Internet Banking up to the date the Multi-payment

is to be actioned.

5.6 We will attempt to action individual payments in the Multi-payment

in the order which you have entered them.

5.7 If we are unable to action any individual payment within the

Multi- payment for any reason (in most cases due to insufficient

funds), then that payment will not be actioned and you will need

to set up a replacement payment (either alone or as part of

another Multi- payment). We will attempt to action any remaining

payments within the Multi-payment.

5.8 The retry rule under clause 3.9 above does not apply to Multi-

payments and we will not retry to action any failed individual

payment within a Multi-payment (either on the same or

subsequent days).

5.9 We will display the status of Multi-payment batches within Internet

Banking from when you begin creating a Multi-payment batch

through to when it is actioned.

6. Signing Rule Application

6.1 Any instructions made within the Electronic Banking Services

in respect of Nominated Accounts must comply with the Signing

Rule. If a Signing Rule requires two or more people to authorise

instructions, for instructions initiated in Internet Banking we

will require the authorisation to be provided by the Authorised

Signatories within Internet Banking for the applicable account(s)

in accordance with the Signing Rule.

6.2 To authorise instructions initiated on an account using the

Electronic Banking Services, Signatories must also have

registered for and have access to Internet Banking.

6.3 Any instructions initiated using the Electronic Banking Services

must be authorised prior to 8:30pm on the date the instruction

is to be actioned. If the instruction is not authorised by this time

it will be automatically cancelled.

6.4 Only the customer who initiates an instruction for authorisation

may edit/delete an instruction before it has been authorised in

accordance with the Signing Rule.

6.5 Any Signatory for an account with Internet Banking access may

edit or delete an authorised future dated instruction. Authorised

instructions will only be edited or deleted following reauthorisation

of those changes. If the request to edit or delete the instruction is

not authorised prior to 8:30pm on the date the instruction is to be

actioned, then it will still be actioned as originally authorised.

6.6 Instructions authorised for the same day cannot be edited or

deleted once they have been authorised.

6.7 If the source account for an instruction is edited to an account

which has a different Signing Rule, only the Signing Rule of the

new source account will be required to authorise the edited

instruction.

6.8 Once an edited instruction is authorised the original instruction

will no longer be actioned and will be replaced by the edited

instruction.

6.9 Signatories who may authorise an instruction may also decline

an instruction.

6.10 If an instruction is declined by a Signatory, then that instruction

cannot proceed even if there are sufficient additional Signatories

who may have been able to otherwise authorise the instruction

in accordance with the Signing Rule.

6.11 The Signatory who declines an instruction is prompted to provide

a reason for declining the instruction which is provided to the

initiator as a secure message within Internet Banking.

6.12 You can view any instructions awaiting approval in Internet

Banking for accounts that you have access to.

6.13 If instructions are authorised by another account Signatory in

accordance with the applicable Signing Rule, Second Factor

Authentication will not be triggered. However, Second Factor

Authentication may be triggered where a Signing Rule only

requires one Signatory.

7. Reversing Transactions

7.1 If you have provided a payment instruction in the Electronic

Banking Services, you cannot cancel that payment instruction

except where the instruction relates to a future-dated payment and

you instruct us to stop the payment prior to the stipulated date for

payment in line with the Signing Rule for the applicable account.

7.2 Notwithstanding that transactions are irreversible once authorised,

if a request for reversal of a payment is made, we will attempt to

recover the payment. There is no guarantee that we will be able

to recover the payment and a fee will apply for requesting the

reversal.

7.3 If funds are paid to an incorrect account in error, those funds will

not be recoverable unless the owner of the account to which the

funds were transferred consents to the recovery.

7.4 You agree to meet the Bank’s fees and costs in respect of any

attempted reversal of a payment or transfer, whether or not the

attempt is successful. You agree to the Bank debiting any such

fees and costs from your Nominated Account(s). Fees are set

out within the Bank’s Account Charges document (which can

be found at sbsbank.co.nz/fees-and-charges.

8. Transactions

8.1 You will not be able to draw via any of the Electronic Banking

Services on any funds deposited to your Nominated Accounts

until they become cleared funds.

8.2 The Bank may set minimum and maximum limits for transactions

carried out via any of the Electronic Banking Services.

8.3 Any action taken by the Bank to:

a. close, or suspend access to your accounts in accordance with

our General Terms and Conditions; or

b. terminate or suspend access to your Credit Card Account

following request by SBS Money Limited, may impact your

access to your Nominated Accounts and/or Credit Card

Accounts through our Electronic Banking Services.

8.4 In the absence of any daily or other periodic transaction limit

arrangements between you and the Bank, you can only withdraw

funds or make payments up to the available balance of your

selected Nominated Account (including the unused portion of any

credit limit relating to that account).

8.5 You agree that when determining the available balance or credit

limit on any Nominated Account we will not include the available

balance or credit limit from any of your other accounts with the

Bank.

8.6 You acknowledge that third parties such as merchants or other

financial institutions may impose additional restrictions on the

amount of funds you may withdraw, deposit or transfer.

9. Changes to these Terms and Conditions

9.1 The Bank has the right to vary these Terms and Conditions

and any other terms and conditions applying to your Nominated

Accounts and Credit Card Accounts and to vary, change or

withdraw any of the Bank’s services at any time.

9.2 Subject to the exception under clause 9.3 below, you will be

given at least 14 days’ notice of any variation either by post to

your last known address, email, telephone call, notice on our

website and/or via an electronic banking channel used by you.

9.3 We are not obliged to give you advance notice if an immediate

change to these Terms and Conditions is deemed necessary for the

security of the Electronic Banking Services or individual accounts.

10. Privacy

10.1 In addition to our ‘Privacy Statement’ in our General Terms and

Conditions, you authorise us to give information about you

and any of your Nominated Accounts and Credit Card

Accounts to others in order to execute your instructions to us

via Electronic Banking Services or where we reasonably think

it necessary for the provision of that service. However, you

may instruct us not to share your information by giving us

written instructions to that effect. By doing so you

E-Banking-T&Cs: Updated 30 November 2025

acknowledge that this may compromise the Bank’s ability to both

act on your instructions and effectively provide Electronic Banking

Services to you in accordance with these Terms and Conditions.

11. Restrictions and Termination of Access to Electronic

Banking Services

11.1 Access to Electronic Banking Services may be suspended or

cancelled:

a. in the case of Nominated Accounts, in accordance with our

General Terms and Conditions (including the sections titled

“Suspending Accounts and Transactions” and “Closing of

Accounts and the Withdrawal of Products and Services”); and

b. in the case of Credit Card Accounts, on receiving a request or

instruction from SBS Money Limited.

11.2 In addition, we may suspend or withdraw your access to any of

the Electronic Banking Services at any time without prior notice if:

a. you have breached these Terms and Conditions or have acted

fraudulently;

b. we learn of your death, Bankruptcy or lack of legal capacity

or that you have committed an act of Bankruptcy or that a

Bankruptcy application has been made against you;

c. we consider that we have other reasonable grounds to do

so (in which case all reasonable efforts will be made to advise

you of the circumstances of withdrawal or suspension);

d. we are complying with a court order;

e. we are notified by any party of a dispute over either the

ownership of funds or the operation of any account; or

f. we are protecting one or all of the parties to a Nominated

Account or Credit Card Account, the Bank, or a third party who

has reasonably claimed an interest in the Nominated Account

or Credit Card Account.

11.3 You may cancel your access to any of the Electronic Banking

Services at any time during Business Hours by visiting any of

our Branches or by calling our Contact Centre on 0800 727 2265,

or outside New Zealand on +64 3 211 0700. You will remain

responsible for any instructions made on your Nominated

Accounts or Credit Card Accounts via the Electronic Banking

Services up until the time of cancellation.

12. Liability

12.1 Once you have notified the Bank that either your Password or

Mobile Banking App PIN have been disclosed to someone else,

or you suspect that this may have occurred, either in New Zealand

or overseas, you will not be liable for any unauthorised transactions

carried out after that time unless you have breached these Terms

and Conditions or the General Terms and Conditions, or you have

acted fraudulently or negligently.

12.2 You will only be liable for up to $50.00 for any unauthorised

transaction that has taken place before you notified the Bank

unless you have:

a. unreasonably delayed notifying the Bank;

b. selected an unsuitable Password or Mobile Banking App PIN;

c. disclosed your Password or Mobile Banking App PIN to anyone

else, either deliberately or inadvertently, such as if you failed to

take reasonable steps to prevent disclosure of any of these

when keying them in;

d. written your Password or Mobile Banking App PIN down; or

e. failed to take reasonable care to prevent unauthorised access

to the Device that you use to access our Electronic Banking

Services.

12.3 If any of the above apply you will be liable for all transactions

completed prior to you notifying the Bank up to the maximum

amount that you yourself could have transferred from your

Nominated Accounts or Credit Card Accounts via Electronic

Banking Services during that time.

12.4 If you have, in the Bank’s sole opinion, contributed to the cause

of any unauthorised transactions, you may be responsible for

some or all of the actual losses incurred before notification of the

disclosure of your Password or Mobile Banking App PIN to the

Bank except for:

a. any amount that exceeds any applicable transaction limit;

b. any portion that exceeds the balance of your Nominated

Account or Credit Card Account;

c. fraudulent or negligent conduct by a team member of the Bank

or agent or other party involved in the Electronic Banking

Services; and

d. any other unauthorised transactions where it is clear that you

could not have contributed to the loss.

12.5 The Bank will not be liable for any unauthorised use of the

Electronic Banking Services in circumstances where you have

failed to take reasonable steps to ensure that protective systems

such as virus scanning, firewall, anti-spyware, and anti¬spam

software on your Device are up to date or where you have failed

to take reasonable care to safeguard any Device that is used by

you to access the Electronic Banking Services. You agree to

allow the Bank access to your Devices and any relevant related

equipment to enable the Bank to determine whether you have

taken all reasonable steps to protect the security of your Devices.

12.6 If you incur a direct loss that is due to a security breach of the

Electronic Banking Services and caused as a result of our failure

to take reasonable care and that loss is not caused or contributed

to by you, then we will reimburse you for that loss.

12.7 We will reimburse you for any losses caused by transactions

not authorised by you and completed before you had access to

the Electronic Banking Services or during any period where you

did not have access to Electronic Banking Services including, if

applicable, before you have selected either your Mobile Banking

App PIN or Password.

12.8 Subject to the exceptions set out in the preceding sub-clauses

in this clause, to the extent permitted by law the Bank will not be

liable to you or any other person and accepts no responsibility

for any claim, loss, damage, cost or expense whether direct or

indirect, consequential or economic which arises in connection

with any one of the following:

a. your use of any of the Electronic Banking Services;

b. any unauthorised use of your Password or Mobile Banking

App PIN

c. any system or telecommunications link failure; or

d. any default, error or defect in design or engineering of the

Electronic Banking Services or any delay, fault, malfunction,

unavailability or loss of access to the Electronic Banking

Services.

13. Compensation for Authorised Payment Scam Losses

13.1 Notwithstanding any other provision of these Terms and

Conditions if we, or the NZBA member that receives a payment

which is an Authorised Push Payment Scam you made (if that’s

not us), don’t meet the applicable scam protection commitments,

and you’re eligible, we’ll compensate all or some of your loss.

13.2 You’re eligible for compensation for your loss from an Authorised

Push Payment Scam if:

a. you provide us with satisfactory evidence that the payment

was an Authorised Push Payment Scam;

b. you are a consumer (as defined in the Consumer Guarantees

Act);

c. the payment was a domestic payment to a New Zealand bank

account;

d. you weren’t using a third-party payment service to make the

payment;

e. you weren’t using the payment to buy goods or services on

social media or other equivalent online marketplace;

f. you weren’t dishonest or fraudulent in making the payment;

g. you reported the scam to the New Zealand Police and to us

within 3 months of discovery and 12 months of the last

payment (if more than one);

h. you apply to us for compensation within 3 months of discovery

and 12 months of the last payment (if more than one); and

i. you cooperate and respond quickly to our reasonable

information requests about what happened.

13.3 If you’re eligible, whether we will compensate all or some of your

loss will depend on whether we consider, in our reasonable

opinion, that you took reasonable care when deciding to make or

making the payment.

13.4 We’ll only compensate for authorised payment scam losses three

times during our banking relationship and up to a maximum

combined total of $500,000. Beyond this, we’ll use our discretion.

14. Internet Banking Your Password

14.1 In order to access Electronic Banking Services, you must hold

E-Banking-T&Cs: Updated 30 November 2025

an account with us, hold a Credit Card Account or be a Signatory

or Authorised User of an account with us.

14.2 When accessing Electronic Banking Services, you will be able to

select and switch between the different account relationships you

have with the Bank (i.e. company, trust, partnership, individual and

joint holdings) using the ‘account management’ option without

having to manage separate logins for each account relationship.

14.3 You can set one account relationship as the default account

relationship which you view when you log in. You must then switch

between account relationships to be able to transact and view

details for each particular account relationship.

14.4 You may only use the Electronic Banking Services to perform

transactions on your Nominated Accounts and/or Credit Card

Accounts. Any transactional restrictions that apply to a particular

Nominated Account (such as a fixed term deposit account or a

loan account) or Credit Card Account will apply when using the

Electronic Banking Services.

14.5 If you are a Signatory to a Nominated Account, you may access

the account through Electronic Banking Services subject to any

Signing Rules for the account.

14.6 You acknowledge and agree that we are authorised to act on

instructions given by you through Electronic Banking Services by

using any combination of your Password or Mobile Banking App

PIN and that we are not obliged to make any further enquiries.

14.7 If any Nominated Account or Credit Card Account is in the name

of more than one person, the liability of all account holders under

these Terms and Conditions will be joint and several for any

transactions carried out on that account in accordance with these

Terms and Conditions.

14.8 The Bank may restrict which of your accounts (including Credit

Card Accounts) you can nominate for access via Electronic

Banking Services and may also restrict the Electronic Banking

Services available to those accounts.

15. Fees/Charges

15.1 You agree to pay all fees and charges relating to any Electronic

Banking Services in addition to any applicable account, credit

and transaction fees. Fees and charges are subject to change.

Our current fees and charges are available on request and free

of charge from any Branch of the Bank or can be viewed at

sbsbank.co.nz/fees-and-charges.

15.2 The Bank may deduct such fees and other charges from your

account(s) in accordance with the “Fees, Costs and Deductions”

section of our General Terms and Conditions.

16. Internet Banking

16.1 When you first log into Internet Banking, you will be asked

to select your own Password. Passwords must be 8 to 32

characters in length, may consist of a combination of permitted

characters on your keyboard and must contain (in any order you

choose) at least two numeric digits and at least two characters

that are not numeric digits, including one upper case and one

lower case letter.

16.2 You must change your Password the first time you use Internet

Banking and at frequent intervals thereafter, for example,

monthly. It is your responsibility to change your Password

regularly.

16.3 When accessing Internet Banking you will have three attempts

to successfully enter your Password. Upon the third unsuccessful

attempt your Internet Banking access will be suspended.

16.4 To restore your Internet Banking access follow the steps set out

in clause 1.3.

16.5 To use Internet Banking you will need to have access to the

internet on a Device running a current version of a supported

internet browser. Details of supported internet browsers are

available at sbsbank.co.nz or by contacting the Bank in person

at any of our Branches during Business Hours or by calling our

Contact Centre on 0800 727 2265, or outside New Zealand on

+64 3 211 0700.

16.6 Check your last log-in details, which will appear every time you

log into Internet Banking and notify us immediately if the last

log-in details are incorrect.

16.7 You should ensure that your computer contains up-to-date

anti-virus and security software before using Internet

Banking.

16.8 When you finish using Internet Banking, we recommend that you

shut down all the windows of the browser you have used to gain

access to Internet Banking and then restart the browser in

order to ensure that the “Back” function (or similar function in

your browser) cannot be used to trace your activities.

16.9 If you require assistance with clearing your browser’s cache,

we suggest you review your browser help facility or contact a

PC support or maintenance service for instructions on how to

complete this process.

17. Mobile Banking App

17.1 To use the Mobile Banking App you must:

a. have a Mobile Device running a Compatible Mobile

Operating System;

b. accept these Terms and Conditions;

c. register for Second Factor Authentication (if not

already registered);

d. setup a 5-digit personal identification number (the Mobile

Banking App PIN) to access the Mobile Banking App on your

Mobile Device.

17.2 You may register to use the Mobile Banking App on more

than one Mobile Device. You will need to register each

Mobile Device separately and each will have a separate

Mobile Banking App PIN.

17.3 Resetting the Mobile Banking App PIN for one Mobile Device

will not change any Mobile Banking App PIN you have assigned

to any other Mobile Device you have registered for the Mobile

Banking App.

17.4 Each Mobile Device can have the Mobile Banking App registered

for only one customer at a time.

17.5 Not all Electronic Banking Services are available on the Mobile

Banking App. More comprehensive Electronic Banking Services

are available through accessing Internet Banking. Specifically,

Multi-payments and instructions where a Signing Rule requires

two or more people to authorise those instructions cannot be

initiated or authorised within the Mobile Banking App.

17.6 You must not allow other persons to use the Mobile Banking App

on Mobile Devices you have registered for Electronic Banking

Services (and have not since deregistered).

17.7 For security reasons, you are recommended to deregister Mobile

Devices which you no longer use for the Mobile Banking App.

To deregister a Mobile Device from using the Mobile Banking

App you will have to contact the Bank directly.

17.8 The accounts you nominate for Balance Peek will be the same

across all Mobile Devices you have registered for the Mobile

Banking App.

18. Non-Personal Customers

18.1 Where you use Electronic Banking Services for non-personal

purposes, then without prejudice to any other provisions of these

Terms and Conditions, you must ensure that your Password(s)

and Mobile Banking App PIN(s) are kept secure as you are solely

responsible for any use or misuse of the Password(s) and Mobile

Banking App PIN(s) by any persons authorised to sign on your

accounts which are accessible through the Electronic Banking

Services.

18.2 You should reconcile your financial records with your bank

statements at least monthly so that your instructions via the

Electronic Banking Services can be monitored.

18.3 To the extent allowed by law, the provisions of the Consumer

Guarantees Act 1993 will not apply to Non-Personal Customers

using the Electronic Banking Services.

19. Liability for Non-Personal Customers

19.1 The ability to utilise Electronic Banking Services for non-personal

purposes exposes your organisation to a higher risk of fraud,

either by Authorised Users or by any unauthorised person to

whom an account number and Password has been disclosed.

E-Banking-T&Cs: Updated 30 November 2025

You acknowledge that Electronic Banking Services exposes

your organisation to these risks and that, except in the case of

fraudulent or negligent conduct by an employee or agent of the

Bank, the Bank:

a. is not liable for any loss which your organisation suffers as a

result of any use (including unauthorised use) of the Electronic

Banking Services; and

b. may rely on all instructions received from, and is not required

to verify the identity of, any person using a Customer Number

and Password issued to your organisation.

20. Second Factor Authentication

20.1 To utilise the full functionality of Internet Banking and gain access

to the Mobile Banking App, you must register for Second Factor

Authentication. Some features will not be available if you choose

not to register.

20.2 To register for Second Factor Authentication, you will need to

provide an active mobile phone number for your Mobile Device

which can receive SMS messages. This can be done by

contacting the Bank during Business Hours either in person

at any of our Branches or by calling our Contact Centre on

0800 727 2265, or outside New Zealand on +64 3 211 0700.

20.3 Once registered for Second Factor Authentication you are not

able to switch it off, nor change the criteria which triggers the

process.

20.4 Second Factor Authentication is triggered when certain account

activity requires separate validation of an instruction being

provided to the Bank.

20.5 To authenticate an instruction given to the Bank which triggers

Second Factor Authentication:

• Your registered mobile phone number will be sent an

SMS Code.

• You must enter the SMS Code provided within the applicable

Electronic Banking Service.

20.6 If you are unable to successfully complete the Second Factor

Authentication process you will need to contact the Bank during

Business Hours for assistance either in person at any of our

Branches or by calling our Contact Centre on 0800 727 2265,

or outside New Zealand on +64 3211 0700.

20.7 If for some reason your Second Factor Authorisation Code is

compromised you must get in touch with us immediately. You

should never share any Second Factor Authorisation Code’s

with anyone else, including bank staff, police or family members.

20.8 The Bank does not guarantee that SMS Codes will be received

by you.

20.9 The Bank does not guarantee that the Second Factor

Authentication service will be available at all times.

20.10 You accept that SMS Codes are not encrypted and contain

confidential information. The Bank takes no responsibility for any

SMS Codes that are read/accessed by an unauthorised third

party on your mobile phone.

20.11 The Bank takes no responsibility for ensuring that the mobile

phone number you provide is correct and shall not be liable for

any failure of Second Factor Authentication, and associated

instructions which have triggered it, resulting from a mobile phone

number which you have provided which is neither current nor

correct at the time the Second Factor Authentication is triggered.

20.12 You are responsible for any fees charged by your mobile service

provider.

20.13 You must notify us of any changes to your registered mobile phone

number and we will change where your SMS Codes are sent to.

20.14 To the extent permitted by law, the Bank will not be responsible

for any direct or indirect costs, losses, damages, or other liability

resulting from any failure or delay in receiving SMS Codes.

21. SMS Alert notiﬁcations

21.1 When you register for Internet Banking and confirm your mobile

number:

a. you may opt to receive Account Alerts; and

b. you will automatically be opted in for Internet Banking Alerts.

21.2 SMS Alerts are only available for Credit Card Accounts and

specific transactional and savings accounts which the Bank

makes available for the service.

21.3 You can opt in or out of receiving SMS Alerts (excluding Internet

Banking Alerts) within Internet Banking or alternatively during

Business Hours either in person at any of our Branches or

by calling our Contact Centre on 0800 727 2265, or outside

New Zealand on +64 3 211 0700.

21.4 The Bank will not charge a fee for sending Internet Banking

Alerts. Fees may be charged for Account Alerts (please refer

to our ‘Account Charges’ document for further information).

21.5 Standard mobile carrier fees may also apply for the sending

and/or receiving of SMS Alerts.

21.6 The Bank does not guarantee that SMS Alerts will be received

by you.

21.7 The Bank does not guarantee that the SMS Alerts service will be

available at all times.

21.8 Information sent by SMS Alert will be correct as at the time it is

sent by the Bank.

21.9 You accept that SMS Alerts are not encrypted and may contain

confidential information. The Bank takes no responsibility for any

SMS Alerts that are read/ accessed by an unauthorised third

party on your mobile phone.

21.10 The Bank takes no responsibility for ensuring that the mobile

phone number you provide is correct and shall not be liable for

the disclosure of your personal or confidential information to a

mobile phone number which you have provided which is neither

current nor correct at the time the information is sent.

21.11 Changes to your mobile phone number you advise to us will

change where your SMS Alerts are sent to.

21.12 To the extent permitted by law, the Bank will not be responsible

for any direct or indirect costs, losses, damages, or other liability

resulting from any failure or delay in receiving SMS Alerts or

inaccurate information received in alerts.

22. Continuity of Service

22.1 We will endeavor to provide access to the Electronic Banking

Services on a continuous basis, subject to any necessary

downtime that may be required for system maintenance, repairs

and updating, or loss of access resulting from matters beyond

our control.

22.2 We reserve the right to suspend, terminate or otherwise alter

access to some or all of the Electronic Banking Services at any

time and without notice. Particularly in cases of:

a. periodic maintenance and updates; or

b. where a threat has been identified to the security of any,

or all, of the Electronic Banking Services.

22.3 We will not be held liable for any loss which you or your

organisation suffers as a result of any loss of continuity for any

of the Electronic Banking Services. If the Electronic Banking

Services are unavailable, it is your responsibility to use other

means to effect transactions and do your banking.

22.4 Some of the Electronic Banking Services also rely on the

provision of third party services to you including internet access,

mobile network data and cellular coverage. By using the

Electronic Banking Services, you agree that the Bank will also

not be liable for any failure in the Electronic Banking Services

caused by failures of third parties either in part or in full.

E-Banking-T&Cs: Updated 30 November 2025

Deﬁnitions

“Account Alerts” means SMS Alerts that you set up within Internet

Banking to notify you of activity occurring on your Nominated Account(s)

and/or Credit Card Account(s). These alerts can be customised to your

requirements.

“Account Operating Authority” means the current account operating

authority form completed and signed by the customer for an account

with the Bank.

“Approved Payee” means any organisation or individual who has

provided their payment details to enable payments to be made to them

by the Bank’s customers using the Electronic Banking Services.

"Authorised Push Payment Scam" means a payment you have

deliberately made after being deceived about the purpose of the

transaction or the identity of the recipient.

“Authorised User” means a user authorised by the account holder(s)

including Partner(s), Trust Administrator and Trust Supervisor.

“Balance Peek” means the Mobile Banking App feature that allows

you to view the available balance of selected Nominated Accounts and

Credit Card Accounts without logging into the Mobile Banking App using

your Mobile Banking App PIN.

“Bank”, “we”, “us” or “our” means Southland Building Society trading

as SBS Bank and HBS Bank - a registered bank with a mutual building

society structure.

“Bankruptcy” includes the loss of capacity, insolvency, receivership,

liquidation, removal from the register, statutory management or any

similar occurrence, and petition for Bankruptcy includes any step taken

for or towards these.

“Branch” means one of the Bank’s branches in New Zealand and

“Branches” has a corresponding meaning.

“Business Hours” means the hours of operation of either the

Bank’s Branches or the Bank’s Contact Centre which can be found

at sbsbank.co.nz.

“Compatible Mobile Operating System” means the minimum version

or newer of a Mobile Device’s operating system specified on an official

download screen for the Mobile Banking App.

“Credit Card Account” means the account(s) you hold with SBS

Money Limited that can be accessed using your SBS Visa Credit

Card(s) and that has/have been nominated by you to be accessed

via our Electronic Banking Services.

“Customer Number” means the identification number, alternatively

referred to as a “member number”, issued to you by the Bank. This

enables us to identify you when you access any of the Electronic

Banking Services.

“Device” means any electronic device used to access any of the Bank’s

Electronic Banking Services (this includes desktop, laptop, tablet and

other handheld computers along with mobile phones).

“Electronic Banking Service(s)” means the electronic banking services

provided by the Bank to provide access to Nominated Accounts and

Credit Card Accounts for customers including Internet Banking and the

Mobile Banking App.

“External Account” means an account not held with the Bank or any

of its operating brands.

“General Terms and Conditions” means the Bank’s General

Terms and Conditions as amended from time to time (located at

sbsbank.co.nz/terms-conditions).

“Internet Banking” means the internet banking service provided

by the Bank to provide access to Nominated Accounts and Credit

Card Accounts for customers using a unique Customer Number and

Password.

“Internet Banking Alerts” means SMS Alerts which alert you to

actions made on your Nominated Account(s) or Credit Card Account(s)

through Internet Banking. These are designed to notify you of:

• Changes made to your Password or Mobile Banking App PIN;

• Maximum Internet Banking login attempts have been exceeded; or

• Changes to your mobile phone number initiated within the

Electronic Banking Services.

“Mobile Banking App” means the Bank’s software application

designed to run on Mobile Devices and provide a selection of key

Electronic Banking Services.

“Mobile Banking App PIN” means a confidential 5-digit personal

identification number to prevent unauthorised access to and use of

the Mobile Banking App on your Mobile Device.

“Mobile Device” means any portable device using a wireless internet

connection to access any of the Bank’s Electronic Banking Services

including but not limited to smartphones and tablet computers.

“Multi-payments” means payment instructions provided in Internet

Banking consisting of multiple payments together.

“Nominated Account” means the bank account(s) you hold with the

Bank that has/have been nominated by you to be accessed via our

Electronic Banking Services (but does not include a Credit Card

Account).

“Non-Personal Customer(s)” means the account is either owned by

(in part or in full) or operated by an organisation (including any company,

trust, partnership, incorporated or unincorporated group, or entity), or

person(s) operating in a professional or business capacity.

“NZBA” means the New Zealand Banking Association. SBS Bank is

a member of the NZBA.

“NZBA Member” means the members of the NZBA from time to time.

The following are NZBA Members as at the date of these Terms and

Conditions: ANZ, ASB, Bank of China, BNZ, China Construction

Bank, Citi, Heartland, HSBC, ICBC, Industrial and Commercial Bank

of China, J.P. Morgan, Kiwibank, KB Kookmin Bank, Rabobank, SBS

Bank, The Cooperative Bank, TSB, and Westpac.

“Partner” means a nominated employed person within a professional

business, who holds various levels of involvement in the operational

decisions of a business entity.

“Password” means a confidential password used to prevent

unauthorised access to and use of your accounts, used with your

Customer Number to give you access to Internet Banking.

“Second Factor Authentication” means the SMS Code verification

process used by the Bank to ensure security of the Electronic Banking

Services.

“Signatory” means any person who is listed on the Account Operating

Authority for your account(s) as being able to complete transactions.

“Signing Rule” means the rule set out within the Account Operating

Authority for either an individual or group of accounts, which specifies

how many Signatories are required to authorise and transactions or

instructions in relation to the applicable account(s).

“SMS Alerts” means an automated notification service which sends

text messages from the Bank to a mobile phone number provided by

you, including Account Alerts and Internet Banking Alerts.

“SMS Code” is a short code sent by the Bank by text message to the

customer’s registered mobile number.

“Terms and Conditions” means these terms and conditions.

“Trust Administrator” means a nominated employee of the entity

practicing in trust management, who holds levels of operational authority

for processing trust accounting activities.

“Trust Supervisor” means a nominated partner of the professional

entity, who holds the Trust Account Supervisor position, and is therefore

responsible for all account administration of accounting for that entity.

“you” or “your” means the account holder, including (as may be

applicable) any holder of a joint account, any company, firm, partnership,

trust, estate, society (whether incorporated or unincorporated), lodge,

club or user of Electronic Banking Services.