Regional bank branches get reprieve, will stay open for at least three more years

NZ’s five largest banks won't close any regional branches for the next three years.

New Zealand’s five largest banks will extend their current commitment not to close regional branches for the next three years.

It comes as part of the conclusion of the regional banking hubs trial, which found use for a multi-bank hub (with almost all banking services provided) was lower than many single-brand bank branches.

“Banks understand their importance as part of the fabric of regional New Zealand … that’s why our five major banks – ANZ, ASB, BNZ, Kiwibank and Westpac – have decided not to reduce their existing regional branch networks for three more years,” said New Zealand Banking Association chief executive Roger Beaumont.

The commitment will apply to regions outside the council boundaries of the six major metropolitan areas of Auckland, Hamilton, Tauranga, Wellington, Christchurch and Dunedin.

Beaumont said most of the hub network would remain too.

“NZBA and the participating banks put a huge amount of work into developing the hubs trial. We are proud of what we delivered.

“It showed there is real community support for regional banking. However, it also showed that, even with almost all banking services provided, the customer use for a multi-bank hub is lower than many single-brand bank branches.

“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.”