Several banks slash branch numbers
New Zealand banks collectively cut 44 branches from their networks last year with all the major banks making cutbacks. Figures from KPMG's FIPS Banking report show the total number of bank branches in New Zealand fell from 1024 to 980 between 2017 and 2018.
ANZ - the country's largest bank by assets - made the biggest cut-backs reducing its branch numbers by 12 to 179 while Kiwibank, which has the largest branch network, reduced its number by nine to 244. Westpac reduced its number by eight, BNZ seven and ASB two branches.
An ANZ spokeswoman said the number of customers visiting ANZ branches had been declining and this followed a global trend. "The average ANZ customer now uses online or mobile banking one to two times a day, and visits a branch one to two times a year." But Jessica Wilson, head of research at Consumer New Zealand, said 44 branches over 12 months was a reasonable number - around three to four per month.
Wilson said the impact on consumers would depend on the locations of the closures with smaller centres feeling it tougher. "We get complaints really when in happens more in the small centres. People have to travel further to bank a cheque or talk about their mortgage. It does add to the cost for the consumer."
Wilson said its surveys showed more than 80 per cent believed it was important to have access to a bank branch.
Meanwhile, Consumer satisfaction with banks in New Zealand in the 12 months to December was 79.1%, an increase from 78.2% in the 12 months to December 2017. The increase was a result of eight of the nine largest banks showing improved satisfaction, with TSB the biggest improver up 6.1% points, followed by SBS Bank up 5.0% points, Rabobank up 4.2% points and The Co-operative Bank (up 3.9% points).
New results are from Roy Morgan's Single Source ( New Zealand) survey which includes interviews with over 6,000 banking and finance consumers per annum.
TSB Bank has the highest customer satisfaction of the nine largest New Zealand banks with 88.5%, followed by Kiwibank on 84.6%. These two are well ahead of third placed The Cooperative bank (81.7%), BNZ (80.4%) and Rabobank (79.5%).
The banks performing below the market average for satisfaction (79.1%) were ASB (78.1%), ANZ (77.1%), Westpac (76.5%) and SBS Bank (75.1%). The only major bank to show a decline in satisfaction over the last year was the ANZ, which was down marginally by 1.9% points.
Of the TSB customers who consider them to be their MFI (main financial institution), 89.9% say that they would be very likely to recommend TSB to a friend or colleague (based on a rating of 8, 9 or 10 on a 10 point scale). Their nearest competitor for advocacy rating is The Co-operative bank on 81.4%, with both being well ahead of third placed Kiwibank (73.3%).
The market average for high advocacy across all MFIs is currently 60.9%, which is relatively steady from 60.8% 12 months ago. The ANZ on 57.3% and Westpac (52.7%) are the only banks below the average. This analysis is based on fewer banks due to some having a low number of MFI customers.
Norman Morris, Industry Communications Director, Roy Morgan, says: "While the Finance Royal Commission in Australia has had a negative impact on bank customer satisfaction in Australia, particularly the big four, it appears that this has not generally been felt by the Australian banks operating in New Zealand.