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Westpac NZ has signed the Reserve Bank of New Zealand’s Memorandum of Understanding on Access to Basic Transaction Services, reinforcing its long-standing commitment to improving financial inclusion.
Westpac was the first New Zealand bank to pilot a basic banking service and continues to provide the service for people who may otherwise be excluded from the banking system. In the past year, the bank has supported more than 400 people with complex needs to access these services.
Westpac NZ Senior Manager Financial Wellbeing and Inclusion, Louisa Brock, says the MoU builds on several years of work.
“We’ve collaborated with community organisations, government agencies and the Reserve Bank to better understand and reduce barriers to banking.
“Access to a bank account is like a passport to the economy. It allows people to receive income, pay for everyday needs and participate more independently in society.
“For some New Zealanders, important requirements designed to keep the financial system safe can also create barriers, particularly if someone doesn’t have standard identification, a permanent address or circumstances that fit a standard banking process.
“Our focus has been on finding safe, practical ways through those barriers, rather than accepting that exclusion is the only possible outcome.”
Westpac’s dedicated Financial Wellbeing and Inclusion team works with government agencies, schools, hospitals, refuges and community organisations to support people whose circumstances require a more tailored pathway into banking. Over the past year, Westpac has had more than 22,000 participants through its Managing Your Money financial education programme or supported through the Financial Wellbeing and Inclusion team.
People who may benefit from basic banking services include those experiencing homelessness, victims of domestic violence or financial abuse, young people in care, people with mental health challenges, and individuals transitioning back into the community after time in prison.
“This work is much broader than just opening accounts. Our team take the time to listen to each person’s story and gain an understanding of their unique situation. We then work with the organisations supporting them and apply appropriate safeguards so people can access banking safely.
“For some customers, basic banking services can provide a pathway towards a standard everyday account. We can also connect customers with financial education and support to help them build confidence and financial capability over time.”
Westpac’s service includes supported onboarding and, where appropriate, tailored account settings or controls based on the customer’s circumstances and needs.
Ms Brock says the MoU creates an opportunity to extend that progress across the banking industry.
“Westpac has learned a great deal from the people and organisations we have worked with to date. We are now committed to sharing those insights so the industry can continue improving how it supports New Zealanders who are excluded or underserved.
“Our ambition is simple: if someone needs access to everyday banking, they should have a fair opportunity to obtain it, regardless of which bank they approach.”
CASE STUDY
Siblings aged 16 and 17 were living independently from their family and were entitled to government support. However, they couldn’t receive that support because they didn’t have bank accounts and lacked some of the standard documents normally required to open one.
Their school had been helping them obtain identification and approached Westpac for support.
Westpac’s specialist team worked with the school and the young people to understand their circumstances, verify the information available and establish accounts through a supported onboarding pathway.
With bank accounts in place, the siblings were able to receive the financial support they were entitled to and take practical steps towards greater safety, stability and independence.
CASE STUDY
After a period of homelessness, Ben* had recently found somewhere to live and was trying to rebuild his independence.
But without a bank account, maintaining that stability was difficult. Ben needed an account to receive his benefit directly and pay his everyday expenses. His benefit payments had been going to his son, who withdrew the money and gave it to Ben as cash. Ben’s son was preparing to move away, so that arrangement could no longer continue.
Ben had a copy of his birth certificate, but it did not meet the standard identification requirements for opening an account. This left him caught between two barriers: he needed an account to manage his income and support himself, but his circumstances made it difficult to provide the documents needed to open one.
Westpac’s Financial Wellbeing and Inclusion team met with Ben, reviewed the documents he had and helped him obtain an original birth certificate and Community Services Card. The team then arranged a supported branch appointment, where Ben was able to open a basic bank account.
Having his own account meant Ben could receive his income directly, pay his bills and manage his money independently. After experiencing homelessness, it was a practical but important step towards maintaining greater stability and control over his future.
Ben said the experience left him feeling hopeful about what came next.
*Name has been changed.