Kiwibank falling short of its opening goals

By KEVIN TAYLOR

Kiwibank's management yesterday admitted that it had underestimated the difficulties in signing up NZ Post franchises and that it would not have 300 branches open before Christmas.

Chief executive Sam Knowles said yesterday that by today 140 NZ Post outlets, mostly corporate stores, would have a bank branch open.

He said that by the middle of July 250 branches would be open, around 40 more than the bank with the second-largest branch network, WestpacTrust.

It would only reach "close to 300 branches" by Christmas, because of difficulties in finalising arrangements with some franchised NZ Post outlets.

Last year the bank said it would have 300 branches open this month.

Some franchises have been unhappy with the transaction fee being offered by Kiwibank and have threatened not to sign up.

"We will have a three-week wait and do the next part of the rollout. It will take us by mid-July to [reach] over 250 branches," said Knowles.

Act MP Rodney Hide said yesterday that it was the third time that Kiwibank had put its deadlines back.

Knowles said Kiwibank was now attracting 500 new customers a day, but he would not say for how long that rate had been achieved or give total customer numbers. It is believed the bank has drawn around 16,000 customers.

He said Kiwibank was attracting the type of customers expected, although many people trying to get mortgages were being declined, as the bank operated the same lending criteria as other banks.

* Kiwibank today lifts its floating mortgage rate from 6.7 to 6.95 per cent, following other banks which increased rates last week.

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