Director of Financial System Assessment, Kerry Watt, says financial inclusion is an important feature of an effective modern financial system.
"When people are excluded from financial services, it can limit their ability to participate in the economy and ultimately their wellbeing. Our indicators are part of our efforts to understand and track how the financial system is serving New Zealanders," Mr Watt says.
The indicators focus on the ability of individuals and businesses to obtain and access financial services such as cash services, deposit accounts, and credit.
Key findings from the report include:
- 97% of adults in Aotearoa New Zealand reported having at least one deposit account. However, access varies by age, income, and ethnicity.
- 70% of adults have at least one regulated credit product, though this drops to 64% among Māori. Regional disparities are also evident, with Gisborne showing notably lower access relative to its population size than other parts of the country.
- Rural residents, particularly those over 60, are less likely to find it easy to deposit cash than urban residents.
- Māori-owned businesses received $3.5 billion in lending from the four largest banks, just 2% of total business lending (of $185 billion).
The indicators have been developed based on international approaches and reflect the growing recognition, both globally and domestically, of financial inclusion as a core component of financial system performance.
"Understanding and promoting financial participation is a priority for the Reserve Bank. These indicators build a fuller picture of access, use, and outcomes to support New Zealanders in having reasonable access to financial products and services that meet their needs," Mr Watt says.
More information
Financial inclusion indicators