Banking hub to be trialled
Six banks will take part in year-long test of new service
Grey Power is disappointed to learn of morebank closures and has lobbied relevant agencies since 2016 to ensure, to the best of its ability, that older people are not disadvantaged by bank closures.
“Some live in rural areas with only intermittent or no internet coverage; hearing and sight difficultiesmean that telephone discussion with banking staff is challenging, access to banking facilities far removed from theirhomeis difficult becausemany can no longer drive, and all this requires the growing dependence of the elderly to allow others tomanage their finances, potentially leading to elder abuse,” says Jan Pentecost, president of the Grey Power Federation.
Grey Power is lobbying for an alternative model that would provide local services— potentially through a local banking hub co-operatively representing all banks.
TheNewZealand Bankers Association is conducting a 12month trial of Regional Banking Hubs in Martinborough, Opunake, Stoke and Twizel to test thedemandfor basic banking services in regional communities. The trial includes ANZ, ASB, BNZ, Kiwibank, TSB and Westpac. Three of the trial sites will have community partners, whowill host thehub and provide staff services.
The hubs are based around a SmartATMfor deposits and withdrawals. Other basic transactions will be available on tablets and phones, with staff to assist. Staff will not be able to provide financial advice or assist with individual bank products such ashomeloans, but can help direct customers to phone or internet banking.
The year-long trial wasset to begin inMaybut was delayed by Covid-19. NZBankers Association chief executive Roger Beaumont says he is delighted to see that this unique partnership of six banks looking at innovative ways to support smaller communities, is ready to go.
“During the Covid-19 lockdowns, banks helped thousands ofNew Zealanders get better at using online and mobile banking. Those customers aren’t looking back.
“However, weknowthatsome customers still prefer face-to-face banking and that’s what this banking hub trial is designed to test.”
Grey Power Tauranga and Western Bay of Plenty vice president David Marshall said in Katikati they have seen a gradual erosion of banking services with branches reducing services and opening hours, with an acceleration since Covid lockdown.
“The impending closure of the KatikatiBNZbranch is the first in an apparently inevitable exit of personal banking services from our town.”
Hesays the Covid lockdown showedhowvulnerable our older people are, especially if they are not computer literate, or do not trust online banking, especially after reading about online scams targeted at unsuspecting elderly.
“The cessation of cheques has been an additional blow tomany elderlywhohave had a lifetime of paying their bills in this way, andnow need to either visit their branch, or attempt to master telephone or internet banking which can be daunting for those unfamiliar with moderntechnology.
“Many of our elderly can no longer drive, so trips into Tauranga for personal banking services are not an option. Switching banks is a complicated procedure, especially with the impact of the anti-money laundering measures implemented in our banks.”
Grey Power is watching the capacity of the trial and looking forward to seeing the results.
“The concern is that implementation of the trial announced inMay2019 is onlynow being commenced.
“Wewant to see a practical solution implemented before all the local banks have shut.”