Welcome Limited Granted First Non-bank Deposit Taker Licence By Reserve Bank In Nearly A Decade

• Kiwi-owned and managed, Welcome will bring much needed competition to a sector dominated by traditional banks and finance institutions.
• As a licensed Non-bank Deposit Taker (NBDT), Welcome’s depositors are set to benefit from the incoming Depositor Compensation Scheme*
• Welcome aims to offer better than bank rates for secured term deposits and provide flexible mortgage solutions.

With a Non-bank Deposit Taker licence granted by the Reserve Bank of New Zealand this week, the first in nearly a decade, a new opportunity will soon open up for Kiwis who want to earn better than bank deposit rates or access more flexible mortgage solutions.

Having recognised the growing demand from investors for higher returns, without sacrificing security and transparency, Welcome will offer higher deposit rates than banks, with more certainty of returns and better protection than mortgage funds and unregulated “wholesale” alternatives, says CEO Anton Douglas. “Investors will be able to choose from a range of fixed rate, secured term deposits. Importantly, as a licensed Non-bank Deposit Taker, the Reserve Bank requires Welcome to maintain a minimum level of capital in the business, providing peace of mind for depositors. It’s a real point of difference when comparing Welcome to some other investment options.”

Welcome will offer first mortgage loans to residential and commercial borrowers, providing solutions tailored to their needs. “Our aim is to meet the needs of borrowers who don’t fit into rigid bank protocols or don’t get an answer quickly enough to move on an opportunity.”

Welcome’s Chair and independent director, Tracey Jones, believes the new Deposit Takers Act and planned updates to the regulatory landscape will provide even greater protection and transparency for investors. As a licensed deposit taker, Welcome expects to be eligible under the Depositor Compensation Scheme, providing a government guarantee of up to $100,000 per depositor per provider, when the scheme comes into effect in mid-2025. “We are excited about the added protections and confidence this new regulatory environment will provide to investors,” says Tracey. “When the scheme commences, our investors can expect that qualifying deposits of up to $100,000 will be guaranteed by the government, which helps to grow trust in New Zealand’s financial sector.”

Joining Tracey and Anton on the Board are Hamish Frame, and independent director Sarah Smith, providing significant financial services experience and expertise.

“Kiwis can be confident that their money will be well looked after by experienced managers, and that we offer the additional financial safety net of our own capital,” says Anton.

“It’s the ideal time for Welcome to bring more competition to the market,” he concludes. “New Zealanders have been asking for a homegrown, human alternative that offers better-than-bank deposit rates and more flexible mortgage solutions, and we think they’ll feel right at home with us. We’re excited to get ready for launch and start working with our clients.”

To find out more about Welcome please visit www.welcome.co.nz.

*The Depositor Compensation Scheme forms part of the Deposit Takers Act 2023, and is expected to come into effect in mid-2025. Scheme details are subject to change.

Welcome Limited, FSP 1007093, is not a registered bank. No money is currently being sought, and financial products cannot currently be applied for or acquired under the intended offer. The offer of secured term deposits, if made, will be made in accordance with the Financial Markets Conduct Act 2013.

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