Author: Philip vanDyk

Beaumont said the trial found customers used the banking hubs less than they would single-brand bank branches, which was why the participating banks recently decided to renew their commitment not to close regional branches for another three years.

New Zealand Banking Association chief executive Roger Beaumont said there wasn’t “significant demand” for the physical services, but most of the hub network will remain.

“Our banks currently hold around $60 billion in capital. That investment is essential to banking in New Zealand and, to maintain that investment, their owners need a return. The banks’ return on equity is average compared to other major New Zealand businesses,” Beaumont said.

“NZBA and the participating banks put a huge amount of work into developing the hubs trial. We are proud of what we delivered, and most of the hub network will remain,” Beaumont said.

NZ Banking Association chief executive Roger Beaumont said that once banks are aware of a customer’s category three status, they can work through available options.

Beaumont says the phase two hubs were welcomed by their communities. However, the trial did not indicate a significant demand for these physical services with hub usage lower than many comparable regional branches or ATMs.

“For those reasons, we believe regional New Zealand is better off if banks maintain their current branch networks for three years, instead of closing regional branches and replacing some of those branches with an alternative, such as hubs.”

The New Zealand Banking Association has been trialling hubs providing a smart ATM – putting operations for all banks at one location. The Association says it showed locals preferred to still use a single brand bank – rather than the hub.

Beaumont said banks invested an “enormous” amount back into their business, paid billions in tax and employed 27,000 people.