Rural women welcome banking competition report

Rural Women New Zealand is welcoming the Finance and Expenditure Committee’s report on banking competition and its acknowledgement of the challenges faced by rural communities in accessing banking services.

“The Committee has heard what we have been saying for years – branch closures and the loss of access to cash have a big impact on rural communities,” says National President Sandra Matthews. “The loss of these services makes life difficult for rural people and businesses if they have to travel long distances to do simple bank tasks such as cash withdrawals and deposits, bank their business takings, or maintain a cash float.”

The Committee noted that banks emphasise the availability of online services, but poor connectivity and digital exclusion in rural areas mean many people are effectively shut out of these options.

“Older people, those with limited digital skills, and communities with patchy connectivity are being left behind.”

“For many rural families and businesses, which are dealing with the often complex and multi-faceted intersection between personal and business finances, the opportunity to engage with bank staff face-to-face is also really important,” says Matthews.

RWNZ supports the Reserve Bank’s planned community cash service trials, due to begin in 2025, and agrees with the Committee that access to cash must be safeguarded for rural communities.

RWNZ also welcomes the Committee’s recommendations that the Reserve Bank review rural lending requirements.

“High lending costs place huge pressure on farming families and rural businesses so anything that can be done to alleviate these would be welcome.” says Matthews.

“We look forward to the Government’s response to the report due later this year and an improvements to the banking services available to our rural communities.”