Top Banks in New Zealand
The banking system in the country has produced one of the best financial sectors, giving its citizens access to top-notch services.
The banking system in the country has produced one of the best financial sectors, giving its citizens access to top-notch services.
The Reserve Bank of New Zealand is the country’s central bank. The business was established in 1934, and in 1936 the government acquired about a 100% ownership stake in it.
Similar to the Federal Reserve in the United States, it mostly establishes and implements monetary policies, monitors banks, and controls the issuance of money, serving as the country’s central bank.
It grants banking licenses and manages the Exchange Settlement Account System, which banks use to conduct frequent, sizable payments to one another.
The Reserve Bank also offers clearing and settlement services for high-value debt and equity on behalf of the financial markets. New banks are required to apply for a separate foreign exchange trading license. However, this typically does not pose issues.
There exist 27 banks in the country, along with four Australian banks (ANZ, ASB, BNZ, and Westpac), which are the leading players in the sector and give the country’s economy a boost of around $7.89 billion.
These banks must deliver financial services to customers, including loans and advances, which make up 80% of the assets in the banking system.
The domestic deposit base and money from other offshore nations are major banking industry finance sources. These are essential in the loan service provision process to offer better financial services.
The Top Banks in New Zealand
Banks in the country offer the typical range of consumer and business banking services, including lending, deposit services, and foreign exchange services. With banks worldwide, these banks continue to have their customary correspondent connections.
Nearly all restrictions on the number, operations, and ownership of banks operating in the country were removed due to the government’s liberalization of the country’s banking industry.
The number of licenses granted can be unrestricted, and foreign institutions are given the same rights as state-owned businesses. Banks typically have an “at your own risk” philosophy for managers and depositors. Depositor insurance does not apply to client deposits.
The leading banks in New Zealand are:
ANZ Bank New Zealand
ANZ Bank of New Zealand was established in 1979 as a subsidiary of Australia and New Zealand Banking Group Limited.
Australia and New Zealand Banking Group Limited offer a variety of banking and financial goods and services.
Australia, New Zealand, Institutional, Technology, Services and Operations(TSO), and Group Centers are some of the company’s segments. In addition, the retail and commercial banking business units are a part of the bank’s segments.
The institutional segment serves governments, international institutions, and corporate clients through three product categories: transaction banking, corporate finance, and markets.
The operating divisions receive help from the TSO and Group Centre segment in technology, group operations, shared services, real estate, risk management, financial management, strategy, marketing, human resources, and corporate affairs.
Operational locations for the company include Australia, New Zealand, various nations in the Asia Pacific area, the United Kingdom, France, Germany, and the United States.
ASB Bank
Established in 1847, ASB Bank is one of the country’s oldest banks, with 124 branches and more than 600 ATMs.
The bank serves its customers in three areas:
1. Corporate and Business Specialties
Corporate and business specialties serve many clients, including larger enterprises, developers, non-profit organizations, municipalities, and financial institutions.
In this area, banks offer the following products and services:
- Loan solutions include commercial loans and lines of credit, commercial real estate financing, etc
- Deposit and cash management solutions include cash vaults, night depository services, liquidity solutions, information services, etc.
- Professional financial services include interest rate risk management, foreign exchange solutions, commodity hedging, etc.
2. Community, Consumer, and Business
The sectors serve individuals and small and medium enterprises. In this area, the bank offers the following products and services:
- Loan solutions, such as residential mortgages, home equity loans, and lines of credit;
- Deposit and transaction solutions include checking, credit cards, debit cards, prepaid cards, online banking, bill payment, transfer, etc.
- Investable fund solutions include savings, money market deposit accounts, certificates of deposit, fixed and variable annuities, investment consulting services; Trust and investment management accounts; and Insurance and welfare-related products and services.
- Trust services include pension administration, profit sharing, and employee benefit programs.
3. Risk Management and Shared Services
The segment includes enterprise risk management, credit management, finance, operations, and technology, which are key shared functions.
Bank of New Zealand
The 29th of July 1861 saw the founding of the Bank of New Zealand. With a fully empowered board of directors situated in the country, it became a subsidiary of the National Australia Bank in 1992.
The bank oversees a nationwide network of approximately 400 ATMs and 174 locations. It has 5,000 employees, and its headquarters are located in Auckland.
The Banking Group, one of the biggest banking companies in the country, offers a wide range of banking and financial products and services to retail, commercial, agriculture, corporate, and institutional clients.
The Banking Group is divided into three main operating and reportable segments: Private, Wealth & Insurance, Corporate & Institutional Banking, and BNZ Partnership Banking.
In addition, the specialized divisions of the customer, product and services, corporate affairs, finance, people, risk, technology and operations, and transformation and strategy provide support for these segments.
Kiwibank
It is based in Wellington and has almost about 2,500 workers. Kiwibank is a state-owned corporation that was founded in 2001.
The bank offers retail banking services and products to both individuals and small and medium-sized businesses.
It also provides investment and fund management services and agency services for mortgage loans. Over 250 ATMs and 266 branches are managed by it nationwide.
Kiwibank’s primary activities are personal banking, corporate banking, KiwiSaver, and other wealth services.
- Personal bank: Home loans, personal loans, credit cards, daily accounts, savings accounts, investment services, and insurance products are personal banking goods and services.
- Commercial Banks: Business loans, checking accounts, credit cards, investments, business services, payment services, and insurance are among the goods and services offered by commercial banks.
- International service: This covers traveler’s checks, foreign exchange, and foreign exchange accounts. It also includes manual and online overseas transfers.
Rabobank New Zealand
The company Rabobank International Holding B.V. owns Rabobank New Zealand. In 1994, the New Zealand branch of the Rabobank subsidiary was formally registered as a bank.
Rabobank provides a wide range of high-end, value-added financial solutions in important markets worldwide to individuals, small and medium-sized businesses, companies, financial institutions, investors, and agricultural producers.
Rabobank New Zealand operates in four core businesses:
Rural Financial Services offers a variety of financial services and solutions that are specifically tailored for farmers. These include equipment finance, farm ownership options, retail deposits, flexible long-term rural loans (offered through the All In One account), and facilitation of succession planning.
It offers a variety of financial products and services specifically tailored for middle-market food and agribusiness firms. In addition, relationship managers with skills appropriate to their client’s business needs provide service to our clients.
Giving significant firms in the food, agricultural, beverage, and associated production and service industries access to financial services. In addition, the bank also serves a small number of corporate clients and financial institutions in larger industry sectors.
The bank’s online savings and investment service, RaboDirect (Part of Rabobank New Zealand Limited), offers competitively priced interest-bearing deposit products.
Southland Building Society (SBS) Bank
It was established in 1869 as SBS (Southland Building Society) Bank. The business is situated in Invercargill and currently employs roughly 250 employees.
The bank offers customer service in four different methods:
1. Housing Loans
First-time homebuyer loans, residential housing loans, and residential investment loans are a few of the housing loan options that SBS Bank provides.
2. Everyday Banking
It provides a selection of transaction and savings accounts, personal loans, and foreign goods.
Additionally, SBS Bank provides dedicated trading accounts with no monthly account fees, no minimum opening amount, and the opportunity to win monthly cash prizes for clubs and societies that are not for profit.
SBS subsidiary Finance Now Ltd offers consumer finance options, from retail purchases to personal loans to business solutions.
3. Investment
SBS Bank provides attractive rates on term investments lasting one month to three years.
Additionally, SBS Bank provides various private wealth management services (also provided by Funds Administration New Zealand) and a life-stage KiwiSaver program run by the affiliated New Zealand Funds Authority (FANZ)
These services enable financial advisers to work directly with clients to help them achieve financial goals.
4. Insurance
Through its subsidiary SBS Insurance, SBS Bank provides various personal insurance products. For example, housing, goods, cars, boats, trip insurance, etc.
The country’s Reserve Bank has granted SBS Insurance a license and oversees its operations.
Other banks
The other leading banks in the country are:
1. Co-operative Bank
A cooperative providing financial services is a Co-operative Bank. The bank, established in 1968, provides a wide range of financial goods and services to the nation, including small business banking, savings accounts, certificates of deposit, insurance, and loans.
Its headquarters in Wellington employs over 2,500 employees to run its 200+ branches and ATMs.
2. TSB Bank
An affiliate of TSB Community Trust, TSB Bank is one of the most established financial institutions in the country, established in 1850. Roughly 300 individuals are working for the Plymouth-based bank, which has 25 locations.
TSB Bank is a retail and business bank. It provides various consumer and business banking and financial services, including current accounts, mortgages, credit products, insurance, and savings products.
3. Westpac New Zealand
Westpac bank was established in 1861 and had its main office in Auckland, New Zealand. It works in consumer banking, wealth management, commercial, corporate, institutional banking, and the investment and insurance industries.
Over 450 ATMs and 163 branches are located throughout the country, thanks to Westpac New Zealand Limited.
4. Industrial and Commercial Bank of China (New Zealand) Limited
The bank, based in Auckland, is a subsidiary of Industrial and Commercial Bank of China LTD., one of China’s major banks.
Established in 2013, the bank provides personal banking, investment banking, financial banking, Internet banking, mobile banking, corporate banking, credit and debit cards, trade finance, transfer, and cash management services.
The bank has customers all over the world.
FAQs
There are 27 banks in the country.
Before moving, you can open a New Zealand bank account in your current country.
Doing this is advised because it can be less expensive than the international transfer to your new account if you do it from within the country. Just keep in mind that in most cases, you must visit a bank as soon as you land in the nation to utilize your account fully.
If you are a foreigner and have a visa that permits you to stay in the nation for a specific amount of time, such as a work visa, residence visa, or student visa, you can create a bank account in the country.
The requirements to meet are:
- A form of identification, such as a passport or an ID of the country providing a permanent address in the country, is required, but you may use your current address abroad as proof of address;
- An IRD number from the country; if you don’t already have one, you can use your tax identification number or tax declaration from your country of origin.
- Proof of your visa: This could be a work, residency, or student visa.
An electronic Funds Transfer (EFTPOS) card, typically provided as part of your account, will be something you quickly encounter when banking in the country.
These cards are similar to debit cards because you can buy things using money from your current bank account.
Using EFTPOS outside of Australia and New Zealand is difficult because it’s a local payment system in those nations.
While certain debit cards let you make online purchases, EFTPOS cards do not. This is another distinction. Additionally, there is no contactless option.
The fact that these cards are free is an advantage. If you intend to use a Visa or MasterCard credit or debit card, the one-time cost for these cards is typically around NZ $10 (US $6,50).
In contrast, if you decide to use an EFTPOS card rather than a debit card for your bank account, be sure that you only want to use it in the country or Australia and that you won’t need to use it for any online transactions.
To utilize a New Zealand account, you typically have to pay for using ATMs and EFTPOS machines abroad.
You can also pay a one-time cost for altering services, including setting up automatic payments. You can also be assessed a fee if the bank cannot process your check or electronic payment.
For various bank products, there are often varied minimum deposit requirements that range from 100 to 1,000 NZD ($66 to $660). However, the majority of banks choose not to require a minimum deposit.
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