Westpac NZ supports the Council of Financial Regulators' recommendation to move forward with a collaborative industry-and-regulator-led rollout of basic bank accounts, based on mutually agreed principles and parameters.
The Council of Financial Regulators this morning published a summary of its recent industry consultation, which recommended that banks continue working closely with regulators to help more New Zealanders access a bank account.
The Reserve Bank of New Zealand is drafting a memorandum of understanding for participating financial services providers, expected to come into effect late this year.
Westpac has taken a leading role and was the first bank to roll out a basic bank account pilot last year.
Westpac's basic bank account provides fee-free access to essential transactional services with bespoke controls applied, depending on a customer's circumstances and needs. These may include things such as simplified onboarding requirements, controlled deposits and daily spend limits.
Westpac NZ Senior Financial Wellbeing and Inclusion Manager, Louisa Brock, says basic banking services open pathways to financial inclusion and independence, and Westpac wants as many New Zealanders as possible to be able to access such services.
"We welcome this recommendation from the Council and look forward to now collaborating with the industry and continuing to share the insights we've gained since we first began providing basic bank accounts last year," Ms Brock says.
"Having more New Zealanders participating in the economy benefits not just the individuals and their families and communities, but Aotearoa as a whole.
"We are able to provide basic banking services through our dedicated financial inclusion team, who work with advocacy groups representing a wide range of people experiencing vulnerability, including people who are homeless and people with accessibility challenges."
She says not having a bank account can mean people are unable to participate in the economy, citing one example where her team helped young people who couldn't otherwise access Government support.
"We were able to support siblings aged 16 and 17 who were living apart from their family and eligible for benefit support payments, but unable to receive them as they didn't have bank accounts.
"Our team worked with their school to help them get the ID they needed, set them up with accounts, and take the first real steps towards independence," says Ms Brock.
Ms Brock says Westpac has been working hard to improve financial inclusion for some time and welcomes this latest step on the journey.
In 2023, the bank commissioned research agency ThinkPlace to investigate the challenges experienced by some groups in accessing banking services and subsequently published The Access to Banking in Aotearoa report, to guide Westpac's work while also helping other organisations to learn from the insights.
"We're committed to improving financial inclusion in New Zealand."
