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Summary
- A group of 6 banks have gathered to share a plan of forming regional banking hubs in small towns of NZ to cut the cost of providing basic banking services.
- The banks will begin with a trial of shared regional banking hubs in November in four regional centres.
- The hubs would be based around a cash machine or Smart ATM that provides for deposits and withdrawals while other basic transactions would be available on tablets and phones.
As more and more customers shift to online banking, banks have been shutting their branches in small regional cities, adding to concerns that getting cash could become difficult in certain regions.
But a consortium of banks has come up with a proposal to share regional banking hubs in small towns across NZ to minimise the costs of offering banking services on the ground.
On 28 October, New Zealand Bankers Association declared that a new banking hub will be launched in the John’s Stoke Pharmacy building at Putaitai St.
Trials for Regional banking hub to begin in November
The new regional banking hub will provide for the customers of ASB, ANZ, BNZ, Kiwibank, TSB and Westpac. The banks will begin with a test of regional banking hubs in November by making use of a pharmacy, an old ANZ office, a community centre and a library.
The trial will test the demand for basic banking services in regional communities and will run in 4 regional centres namely Twizel, Martinborough, Stoke and Opunake.
The ANZ branch will be transformed to Twizel Banking Hub for a year and will open on 17 November.
Martinborough Banking Hub will be introduced in the Waihinga Community Centre in collaboration with Destination Wairarapa and will open on 27 November.
Stoke Banking Hub will join Hardy St Pharmacy in Putaitai Street and will open on 3 December. Opunake Banking Hub will be introduced in the Opunake Library Plus, in partnership with South Taranaki District Council and will open on 7 December.
How the new hubs will operate?
The trial for the hub had to start in May but was delayed due to COVID-19 outbreak.
- The hubs will be based on Smart ATM that provides for deposits as well as withdrawals
- Other basic transactions will be accessible on tables and phones with the staff to assist
- Staff may not be able to offer financial advice or support with particular banking services such as home loans, but will be able to direct consumers to mobile or internet banking
Roger Beaumont Chief Executive of New Zealand Bankers Association showed his gratification on the new partnership of 6 banks to provide support to smaller communities.
Mr Beaumont also added that the 6 participating banks will not shut any branches or cash machines that are within the boundaries of district councils hosting the hubs from 1 January 2021, for the remaining 12-month trial period.
