The number of bank branches in New Zealand has almost halved in the past 10 years.
An international study found the country now has the second-lowest number of branches a head.
We also have fewer automatic teller machines than other similar countries - but more Eftpos machines.
Only 10 years ago, New Zealand
was considered "over-banked."
Today, the Weekend Herald begins a three-part series on the dramatic transformation of New Zealand's banking - and the effects it has had on customers in all walks of life.
Aware of public dissatisfaction with bank services, the Government has pushed the concept of a state-owned "people's bank," operated through New Zealand Post.
But a second measure, using the Crown's clout as a bank customer to force a commercial bank to provide cheap services for low-income people, is also proposed.
Consumer Affairs Minister Phillida Bunkle says banks seeking the Government's business for the next five years may have to agree to set up such services as a condition of this year's tender.
The Government contract is now held by WestpacTrust.
Ms Bunkle says she has discussed this option with Economic Development Minister Jim Anderton and Finance Minister Michael Cullen.
She has also asked officials to prepare a "banking strategy," and plans to set up a tollfree number to gather 'information about people's concerns with banks."
WestpacTrust public relations manager Jane Anderson says the bank is not aware of any tender for the Government contract this year.
And Mr Anderton says the requirements for the contract "are yet to be determined."
Mr Anderton and State Owned Enterprises Minister Mark Burton will meet NZ Post chairman Dr Ross Armstrong on Monday to discuss plans for the "people's bank."
Dr Armstrong says NZ Post's board gave "positive support" to the banking proposal when it met on Wednesday, but asked its staff for further analysis.
Meanwhile, community efforts to keep a basic banking service struggle to survive.
In Waipu, Northland, a community money exchange that started a year ago after the National Bank left town faces collapse unless residents can come up with a rescue plan at a public meeting tomorrow.
The banks - a Herald series
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Big bankers leave little towns in the red
