Report Calls For Collective Action To Improve Access To Bank Accounts

New research commissioned by the Reserve Bank of New Zealand – Te Pūtea Matua has highlighted barriers that can prevent some New Zealanders from opening bank accounts.

The research, titled First steps to financial inclusion, was conducted by ThinkPlace New Zealand and explored opening bank accounts from the perspective of frontline bank staff and customers. It found that certain groups were reported to be most likely to find it difficult to open a bank account, including recent migrants, rural communities, the elderly, people with disabilities, and trusts (including Māori trusts).

“Financial inclusion empowers people to manage money, build confidence, and engage in the economy. Addressing barriers to financial participation is a strategic priority aligned with our modernised legislation,” says Assistant Governor Simone Robbers.

Frontline banking staff play a key role in helping customers open accounts, but some participants reported that they are not able to open accounts for some people. From a survey of 722 frontline staff, a third of frontline staff said that they had not been able to open an account for someone often (on a monthly basis) or very often (on a weekly basis). Some of these cases may be temporary while others may be long term.

The most common barriers reported by participating staff include lack of proof of address, complex paperwork, lack of photo identification, language barriers and lack of access to a bank branch.

Other findings:

• Risk appetite: 76% of participating staff noted being encouraged to take a cautious or very cautious approach to onboarding.
• Awareness: 60% of frontline staff reported that their employer had policies in place to support flexibility and exceptions for onboarding customers, 40% of frontline staff reported that their employer did not have such policies in place, or they were not sure.
• Staff training: Nearly half participating frontline staff said they were trained on how to apply flexibility in the onboarding process, while 31% said they had not been trained and 15% were not sure.

The research also highlighted existing practices that support financial inclusion, such as extra care teams, customer education, policy changes, and both digital and in-person onboarding.

“This research provides a snapshot of the onboarding experience in Aotearoa New Zealand and outlines the shifts needed to promote efficient and inclusive access to bank accounts,” Ms Robbers says.

While the research fills some gaps in understanding access to bank accounts, they also highlight the need for further research (for example, on the annual number of declined bank account applications). The insights from this report will help to inform our upcoming initiatives, including on Financial Inclusion Indicators, Māori Access to Capital, and our work with the Council of Financial Regulators on basic transaction accounts.

“The Reserve Bank remains committed to working with banks, regulators, and community groups to remove barriers and promote financial inclusion for all New Zealanders,” Ms Robbers says.

More information

• Read the full report

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