- New Zealand Banking Association chief executive Roger Beaumont said there wasn’t “significant demand” for the physical services, but most of the hub network will remain.
- “Our banks currently hold around $60 billion in capital. That investment is essential to banking in New Zealand and, to maintain that investment, their owners need a return. The banks’ return on equity is average compared to other major New Zealand businesses,” Beaumont said.
- “NZBA and the participating banks put a huge amount of work into developing the hubs trial. We are proud of what we delivered, and most of the hub network will remain,” Beaumont said.
- NZ Banking Association chief executive Roger Beaumont said that once banks are aware of a customer’s category three status, they can work through available options.
- Beaumont says the phase two hubs were welcomed by their communities. However, the trial did not indicate a significant demand for these physical services with hub usage lower than many comparable regional branches or ATMs.
- “For those reasons, we believe regional New Zealand is better off if banks maintain their current branch networks for three years, instead of closing regional branches and replacing some of those branches with an alternative, such as hubs.”
- The New Zealand Banking Association has been trialling hubs providing a smart ATM – putting operations for all banks at one location. The Association says it showed locals preferred to still use a single brand bank – rather than the hub.
- But the association also said while banks will support their customers, lending to businesses is usually riskier than housing, which is why companies, including farmers, tend to pay higher interest rates than homeowners.
- Together with the New Zealand Banking Association, New Zealand’s retail banks are working towards a new Confirmation of Payee system, which is one way they aim to reduce the number of payments made to fraudulent bank accounts and help people avoid making payments to the wrong account.
