Why we did this research
Improving access to bank accounts has an impact on both monetary policy and financial stability. More people with access to banking services means a stronger economy with a broader base of savers and borrowers.
Recent research carried out by Thinkplace New Zealand on behalf of RBNZ confirmed that opening a bank account remains challenging for certain individuals and groups.
The findings from this report will help to inform our understanding of the problem, and help to guide efforts to break down barriers and find appropriate solutions.
Research focus
This research primarily focused on the supply of bank accounts by providers, rather than the factors that influence customer demand for bank accounts.
Frontline banking staff, such as tellers and banking consultants, are an understudied population who play an important role in enabling access to bank accounts. This research explored how their roles support financial inclusion, the challenges they face, and the factors that influence their decisions.
We also investigated the barriers experienced by various customer segments, including rural communities, youth, older people, migrants, whānau Māori, Māori trusts, and business owners.
Key findings
- A third of frontline staff reported that they were unable to open a bank account for a customer often or very often (on a monthly or weekly basis).
- Frontline staff identified that the main barriers preventing them from opening bank accounts included:
- Lack of proof of address
- Complex paperwork
- Lack of photo identification
- Language barriers
- Lack of access to a bank branch
- 76% of surveyed staff reported that a cautious or very cautious approach is encouraged during customer onboarding, while 16% said they are encouraged to take a moderate approach.
- Frontline staff identified that groups that had the most difficulty opening bank accounts included recent migrants, non-English speakers, rural communities, trusts, not-for-profits, the elderly, people with disabilities, youth, and those facing insolvency.
- Māori participants reported challenges navigating the banking system due to limited cultural capability among some banking staff and difficulty in meeting requirements such as proof of funds and proof of identity across multiple trustees.
The research also highlights existing practises that support financial inclusion, such as having dedicated extra care teams to help frontline staff onboard customers. Other common practices included customer education, changes to internal policies, and having both digital and in-person onboarding options.
Overall, we found that there are opportunities for improvement regarding current onboarding practices.
Research process
This is a joint report that has been developed by ThinkPlaceNZ and the Reserve Bank of New Zealand - Te Pūtea Matua (RBNZ). The research methodology was designed and carried out by ThinkPlace New Zealand, and the report was co-authored by ThinkPlaceNZ and RBNZ, and socialised with the Council of Financial Regulators to gather feedback from peer regulators.