BNZ pips ASB at post with net share trading

By RICHARD BRADDELL

WELLINGTON - The Bank of New Zealand has beaten ASB as the first bank to offer online share trading - but only just.

BNZ's service, which will expand from New Zealand shares to also offer global equities in the New Year, became operational on Monday, while ASB Securities got its service running late yesterday afternoon.

ASB has been the undisputed leader among the banks in pioneering new technology and is offering integrated banking, investment advice and share trading in New Zealand and Australian equities over its site, asbsecurities.co.nz.

But BNZ's general manager of direct retailing, Rob Craig, said yesterday that he was pleased to have beaten ASB to the punch, particularly since the BNZ had, for a time, been slow in meeting customer demand for internet banking and new technologies.

The launch of online trading was a continuation of a thrust that began in November with the launch of internet banking, followed by the collaboration with New Zealand Post for internet bill payments and then online foreign exchange trading.

At the moment, the BNZ online trading, via www.bnz.co.nz, is limited to New Zealand equities, at $39.50 flat rate per transaction, but global stocks will be offered from next year.

Share trading is being undertaken in collaboration with discount broker Access, which itself charges a flat $29.50 per web transaction.

Access customers must open a special BNZ call account before they can trade on the internet.

ASB Securities managing director Tim Preston said he had been aware BNZ had been about to launch and while ASB, too, could have been up and running on Monday, there were things that needed to be put right before the service began.

ASB's site has been signing up customers for some weeks and offers Australasian share trading, full banking services and a range of investment services.

It is also cheaper than BNZ for smaller transactions, with a minimum $24.95 or 0.4 per cent for New Zealand equities and $39.95 or 0.5 per cent for Australian shares.