Deal ends Kiwibank branch woe

Kiwibank says last month's sweetening of the deal for NZ Post franchise holders to take a bank branch has guaranteed a network of at least 250.

The state-owned bank said yesterday that it had more than 250 confirmed sites, and negotiations were continuing with the other NZ Post franchise holders.

Kiwibank came under fire during the past few months as some franchises refused to sign.

One problem was a 53c fee per transaction, which the franchise holders said was too low.

The dissatisfaction, highlighted by Act MP Rodney Hide, appeared to endanger one of the bank's selling points - its extensive network of branches.

But last month Kiwibank sweetened the deal by offering to pay the fitout costs for franchise holders, instead of just offering an interest-free loan.

Bank external relations manager Bruce Thompson said yesterday that the new offer was behind the number of signups.

"We already had some franchise support before that change, but that really did allow us to turn the corner."

Delays in reaching agreement with franchise holders will affect the timing of the rollout, which was to have been finished in June.

The full rollout of franchises will now start in late May.

Of NZ Post's 300-odd outlets, about 170 are franchised and the rest are corporate stores.

nzherald.co.nz/kiwibank