Bargain bank venture still some weeks away

By DITA DE BONI

The Warehouse chief executive, Greg Muir, says a decision about whether the country's largest non-food retailer will offer banking services is at least a month away.

As originally revealed by the Business Herald, The Warehouse has been working on plans to offer financial services to its customer base for more than a year.

But contacted yesterday, Mr Muir played down talk that a joint venture with a bank was imminent.

"We are still formulating plans and are about 4-6 weeks away from announcing anything.

"The end result, which is not probable but still possible, is that the plans we have [to offer financial services] will come to nothing."

"I'm sincerely hopeful they won't, however."

Mr Muir confirmed the chain was negotiating with a partner bank, but refused to say which one. WestpacTrust is considered the most likely candidate because it provides the retail chain's in-store credit card.

The Warehouse held talks with New Zealand Post when the People's Bank was in its formative stage, and abandoned plans for a joint venture with another bank, thought to be ANZ, in September last year, swallowing $1.6 million in costs.

Asked why The Warehouse would consider introducing financial services in its 74 outlets when the Government's plans for the People's Bank had gained traction, Mr Muir said there was no firm indication the People's Bank would be launched.