Aussie banks ‘ducking’ out of regional services
Regional Development Minister Shane Jones has taken aim at this country’s Australian-owned banks for shutting branches in provincial towns, suggesting they should be obligated to adequately service rural areas.
‘‘The Aussie-owned banks are incredibly profitable. Their level of profitability never seems to decline although the breadth of their services is in decline,’’ he told Stuff.
Over the past two years, almost 50 Westpac, BNZ and ANZ branches have closed – evidence of a retreat from the regions, according to the bank workers’ union.
Jones said this country’s banks, which are predominantly Australian-owned, needed to take their responsibility to rural customers more seriously.
‘‘I’ve visited a lot of the more benighted regions of New Zealand and an enormous number of people have historically watched the end of the post office and other key services, and they are horrified that the banks are retreating.’’ He planned to speak with Reserve Bank Governor Adrian Orr about whether banking licences should require a certain level of service to regional New Zealand.
‘‘It is not sustainable to enjoy a banking licence and the pleasure of ever-increasing super profits and turn your back on our rural areas,’’ he said.
ANZ spokesman Stefan Herrick said removing a branch did not mean removing banking from an area.
‘‘ANZ continues to have a large presence in rural New Zealand, and provides more banking options to its customers than ever before,’’ Herrick said.
‘‘Like elsewhere in the New Zealand, people in rural areas are choosing to use branches less.’’
From the end of 2010 to the end of 2017, the number of people going into branches had declined by 68 per cent, demonstrating that ‘‘customers are voting with their feet’’, he said. ‘‘That’s why some branches have been closed or have reduced hours.’’
William Beetham, of Federated Farmers, said that while the younger generation of farmers would happily embrace digital banking, many rural people still needed local branches because they had little-to-no internet connectivity.
‘‘Whilst I can understand it makes sense at a higher strategy level for the banks to go to more automated systems, when you struggle with communication with dial-up broadband and no cellphone coverage and all those other sorts of things, the banks actually being there becomes far more vital.’’
Stephen Parry, national finance sector organiser for the First Union, which represents bank workers, said the increase in branch closures, particularly in rural areas, had been ‘‘sharp’’.
‘‘There has also been a trend towards reducing staffing levels and opening hours,’’ he said.
Taupo¯ Mayor David Trewavas called the proposed closure of ANZ’S Turangi branch ‘‘shameful’’. ‘‘I am sick and tired of these international corporates coming in and cra**ing on regional New Zealand,’’ he said.
Turangi’s post office has a Kiwibank desk but business owners say it does not offer business banking services,
Another region experiencing an exodus of branches from its small towns is Wairarapa.
ANZ recently signalled its intention to close its Martinborough branch next month, which will leave the town without a bank. BNZ closed there a year ago. BNZ is also closing its Pahiatua branch next month and the town lost its ANZ branch in December.
BNZ retail regional manager Ange Mchardy said changing customer needs were behind its decision to close. ‘‘More and more of our customers are choosing to do their banking online and nationwide 89 per cent of our transactions are completed by customers using digital services.’’
Westpac closed its Carterton branch in 2016. Masterton is the nearest town where most major banks still have a presence but it is more than an hour away for many Wairarapa people.