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Home / New Zealand

Kiwibank closure in Dannevirke sparks concern over community access to banking services

Michaela Gower
By Michaela Gower
Multimedia Journalist·Hawkes Bay Today·
27 Aug, 2025 01:16 AM3 mins to read

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NZ Herald Morning News Update | NZ's economy could be growing faster than Australia's, Nicola Willis admits public sector cutbacks have been affecting Wellington's economy.

One of the three banks in Dannevirke has closed its services, citing “unforeseen circumstances”, which mayoral candidates say will leave the Tararua community with limited options.

Kiwibank, which operated out of 42 High St and shared premises with NZ Post, ceased banking services on August 19.

Tararua mayoral candidates say they have concerns the closure will hurt residents, including the elderly, as well as businesses and volunteer organisations.

A Kiwibank spokesperson said the Dannevirke site operated under the “Local for Kiwibank” model, which provided basic over-the-counter banking services through independent retailers.

Kiwibank's closure in Dannevirke has been put down to "unforeseen circumstances" by the company.
Kiwibank's closure in Dannevirke has been put down to "unforeseen circumstances" by the company.
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The spokesperson said local agents operate independently and provide limited services such as cash deposits and withdrawals, and simple card and account maintenance.

“Due to unforeseen circumstances, the Local for Kiwibank agent at 42 High St, Dannevirke, is no longer providing services on our behalf.

“We understand this [closure] may be disappointing and have contacted local customers directly to offer support and alternative banking options.”

The spokesperson said options for locals included 24/7 phone banking, digital banking, Kiwibank’s nationwide ATM network and personalised digital support, with one-on-one help available.

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As of June 2024, 97% of Kiwibank customers primarily connected through digital channels, the spokesperson said.

“While fewer customers of all ages are visiting branches for over-the-counter services, we know that face-to-face banking remains important, especially in moments that matter.”

Four of the five Tararua mayoral candidates – Tracey Collis, Scott Gilmore, Evan Nattrass, and Michael Spence – said the move was disappointing for the community.

Collis said Kiwibank offered the most banking hours in town, and the loss would be felt by businesses and community groups who relied on services such as getting change and depositing cash.

“Dannevirke now has just two banks – Westpac open eight hours over two days, and ANZ open 14 hours over two days.

“That’s inadequate for a population of 8390. Many people, especially elderly residents and volunteers running community groups, will struggle with reduced access.”

Gilmore said branch closures and reduced hours were a growing trend in rural towns.

“Online banking doesn’t meet everyone’s needs, and if this continues, access to essential services will become increasingly difficult.

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“Older residents, small businesses and those without reliable transport or internet are most affected. A lot of bank processes need to be done in person, and reduced services mean more cost, time and stress. ”

Nattrass said he questioned why banks were pulling out of communities.

“Are the banks closing branches because more people are banking online, or are more people banking online because the banks are closing branches?

“There is a definite need for banks in small-town New Zealand and in cities, too, not only to support our businesses and senior citizens, but also in the event of natural disasters.”

Spence said it was a sad and unexpected outcome, and worried for younger generations when it came to learning the banking system.

“When we take our children to open their first bank account, creating first-time loyalty, it’s not going to be with a non-existent local bank.

“It’s extremely difficult to just swap banks when mortgages, KiwiSaver and other commitments are all tied together.”

NZ Post directed Hawke’s Bay Today’s questions back to Kiwibank.

Fifth mayoral candidate Steve Wallace did not respond to a request for comment.

Michaela Gower joined Hawke’s Bay Today in 2023 and is based out of the Hastings newsroom. She covers Dannevirke and Hawke’s Bay news and loves sharing stories about farming and rural communities.

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