New Zealand: More branches close due increase in digital banking

RFi Group data from November 2016 shows that 29% of main financial institution (MFI) relationships which were established more than 10 years were chosen due to convenient branch locations and access. However, this is only the case for 19% for MFI relationships under 10 years old. As branch locations and access are less likely to drive MFI relationships, it is unsurprising that another New Zealand bank has announced the closure of several branches.  Over the last month the Bank of New Zealand (BNZ) has closed its Paeroa and Christchurch Airport branches and plans to close the Paihia branch on April 7. The decision to close the branches is the direct result of digital banking. A BNZ spokesperson explained the bank has constantly reviewed its branch network to meet customer demand however its website far outstrips the traffic in any of its branches, with digital channels accounting for nine out of every ten transactions. BNZ is not the first New Zealand bank to close branches in order to concentrate on their digital banking offering, last year both Westpac and ANZ closed a number of branches across the country. 

Source: RFi Group New Zealand Payments Program Nov-16

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