Summer questions: TSB Bank boss Kerry Boielle calls out ‘disproportionate regulation’

TSB Bank chief executive Kerry Boielle says the Reserve Bank's capital rules give the big banks a "material competitive advantage" over the little ones.

TBS Bank chief executive Kerry Boielle reflects on what it’s like being at the helm of a Taranaki-based bank, as Wellington puts the spotlight on competition issues in her sector. A year into the job, Boielle reflects on the “catch-up” work TSB Bank’s done and suggests how the Reserve Bank could support smaller players in the sector.

How would you describe 2024 for your business?

It’s been an exciting year for TSB Bank and I’m really proud of what the team has delivered for our customers and communities. First and foremost, we’ve been making sure we support our customers well through the cost-of-living crisis. We’ve also been doing a bit of catch-up work, rolling out things like Apple Pay and smart ATMs.

We want to give more New Zealanders a reason to come and sample the TSB Bank magic that our award-winning service delivers, by building products and digital experiences to make banking easier.

What will be your biggest business challenges in 2025?

For us, we have a significant ongoing challenge and that’s managing the ever-increasing regulatory burden. Regulation is important − we need banks to operate safely. But in some areas, it’s disproportionate to the risk it’s designed to address and can turn up as unnecessary pain for our customers. The rising costs and complexity that come with it are significantly reducing the competitiveness of the sector and hindering our ability to innovate for our customers.

As a local, community-owned and customer-focused bank, TSB Bank is a great alternative to the Australian-owned banks. But due to unequal capital requirements and regulations, which aren’t proportionate to the size of the bank, they have gained a material competitive advantage over us for many years, and this continues to grow.

That’s why we’re calling for change to these settings so that all banks can operate from an even playing field. This would drive more competition into the market and result in better outcomes for New Zealanders.

What opportunities do you see in 2025?

Many small to medium-sized Kiwi businesses have had a less than wonderful experience with their bank as they’ve hithard times over the past year or so. They deserve to be supported by a community and customer-focused bank, and this is where TSB Bank will be turning up for them in 2025.

As a leader in New Zealand, I believe there’s a need to champion a positive, Kiwi can-do attitude this year. Many have been operating in a negative environment for a long time now, but that is starting to turn, so I believe as leaders we need to drive momentum and foster a “we can do this” mindset. To help lead Aotearoa forward confidently, let’s not wait for someone else to start.

What will it take to kickstart New Zealand’s economy?

The key focus to kickstart the economy should be improving productivity. It’s an area all governments are concerned about, however, I do worry that short three-year government terms don’t promote longer-term strategies. Successful businesses have both short-term and longer-term strategies working in concert.

We need to embrace a more intergenerational approach, using technology and innovative partnerships to our advantage to address our geographical isolation. If we get this right, along with other settings like right-sizing regulatory frameworks, there will be a lift in participation and investment from the private sector, overseas markets and with it a boost to our economy.

How will a Trump presidency affect the geopolitical dynamics?

I suspect the short answer is that it will. With Trump, it’s hard to split the personality with his role as president, but that will be important to do to ensure effective relationships globally.

International trade will be impacted to varying degrees, as could the dynamics of geopolitical conflicts, and the dialogue on climate will be another interesting area.

However, given how vocal Trump has been on these issues, this should prove helpful and assist other nations to tailor their engagement with the US to minimise impacts to their respective interests. It will be very interesting to watch it play out.

What are the concrete actions your company has taken to reduce climate change?

We’ve recently adopted our sustainability strategy, with a key priority being understanding and owning our environmental impact. This includes our climate impact and we’ve committed to measuring and disclosing our greenhouse gas emissions and have set credible, science-aligned targets for their reduction.

We’re also embedding climate risk across our business and into decision-making. Our sustainability work is centred around supporting our people, customers and communities to navigate the transition to a low-emissions future, and we’re committed to being transparent and accountable as we progress our journey in this space.

Last financial year we reduced our Scope 1 and 2 emissions (emissions from sources owned/controlled by us and indirect emissions from the electricity we purchase) by 26%.

How are you increasing diversity in your business?

We’re just in the process of reinvigorating our diversity and inclusion approach at TSB Bank, which is something I’m personally passionate about. The team has recently been focused on our Te Rautaki Māori, setting the foundations for us to deliver meaningful outcomes for Māori − both our people and our customers. As part of that, we’ve started upskilling our people and I’ve also personally started meeting with Taranaki iwi leaders to better understand the region’s history and their relationship with TSB Bank, so we can better work in partnership going forward.

We’re committed to creating space for our people to be their best selves, both in and out of work. To support this we offer flexible working, six months of paid parental leave, “me” days, community volunteering days, extended sick leave and enhanced bereavement/tangihanga.

What is your New Year’s resolution?

To spend more quality time with my mum and dad. I count myself incredibly lucky to have them so close.

Where and how are you holidaying this summer?

We’re hoping to have a white Christmas with my husband’s family in the UK this year, so more of a winter holiday than a summer one! Then when we’re back in Aotearoa, we’re really looking forward to exploring the beautiful Taranaki region over the summer weekends.

It’s such a rich environment here, from Taranaki Maunga to the coastal spots like the Three Sisters and the walkways in between Pukekura Park and the Te Henui. I also can’t wait to check out the TSB Bank Festival of Lights, Womad and other concerts at the Bowl of Brooklands – New Plymouth really punches above its weight for entertainment over summer.