Westpac is the first of New Zealand's big four Australian-owned banks that is close to signing up to use the Government's new RealMe online identity service.The service launched on July 1 by the Department of Internal Affairs and New Zealand Post creates an officially approved online identity that customers can use to prove who they are when applying for loans, credit cards and insurance contracts. Currently customers have to physically sign documents and prove their identity every time they enter a contract, making it much more difficult for banks to acquire customers online.Internal Affairs Minister Chris Tremain announced at a function at Parliament that TSB Bank and NZ Post's Kiwibank had confirmed they would use RealMe for their online banking services.Westpac is currently the major bank services provider for government departments, but the contract is being put out to tender."Today's announcement means that the same identity verification system will be usable not only for the 40 government services already using RealMe, but for online transactions with participating banks as well," Tremain said. "It will soon be a reality that Kiwis can apply for a passport, update their electoral roll details, and open a bank account - all while staying in their living room, and using the same username and password each time they prove their identity," he said.Almost 1 million New Zealand taxpayers already have an iGovt login for tax returns. RealMe works with iGovt and is approved under a new Electronic Verification law. It also complies with new anti-money laundering and counter-terrorism financing rules.Customers who want RealMe have to verify their identity with a photo at a NZ Post outlet once every five years.