The Bank of New Zealand plans to rectify its admitted neglect of small business customers over the past decade by refocusing efforts to snare a bigger slice of that market.
BNZ wants to attract 25 per cent of the market, which comprises about 300,000 businesses of five or less staff.
At present it can claim 18 per cent.
BNZ business financial services general manager Mike Skilling said his bank had focused on bigger, more profitable customers.
But now it was laying out the welcome mat for tradesmen, builders, electricians, plasterers, painters, the self-employed and people in service industries who wanted transaction-based banking services but were not looking to borrow money.
"They're the ones that are generally a bit peeved with banks because they've been paying some reasonably high fees, particularly on transaction accounts," Skilling said.
Small business customers who take out loans are already the fastest-growing area of BNZ's business. To entice small businesspeople looking only for transaction banking, BNZ is cutting fees, especially for internet banking and over-the-counter transactions.
Skilling says Westpac leads the small business market with a 25 per cent share, the National Bank has 21 per cent, ANZ 15 per cent and ASB 14 per cent.
"ANZ represents the biggest opportunity because it generally has the lowest level of customer satisfaction," he said.
He also has a watchful eye on Government-owned Kiwibank. It is cautiously rolling out services for small- and medium-sized businesses. So far, Kiwibank's business banking consists of three teams of three in New Zealand Post shops.
Neil Ostyke, Kiwibank's market manager for business banking, says the bank is taking a controlled approach and so far has only about 200 customers.
It is targeting firms with five to 10 staff and annual turnover up to $5 million.
BNZ and Kiwibank plan to introduce credit cards specifically designed for small business customers.
