Kiwibank to expand net from this weekend

By KEVIN TAYLOR

Kiwibank will begin to expand its national coverage from this weekend.

A Kiwibank branch will be opened by NZ Post chairman Ross Armstrong on Saturday at Albany Postshop on the North Shore, marking the start of the nationwide arrival of the low-fee alternative to existing banks.

By next Thursday, 29 branches will be open - all in corporate postshops.

The state-owned bank plans to open 25 to 30 branches a week over the next two months, with 36 open by the end of March.

But it is not known how many will be in NZ Post franchises as Kiwibank, an NZ Post subsidiary, is still negotiating with individual franchise holders.

Many franchises are worried that the bank's offer of 53c for each transaction is inadequate and would be bad for their businesses. Of NZ Post's 300 outlets, 170 are franchises.

Although none has spoken publicly, Act MP Rodney Hide has pushed their case as part of his campaign against Kiwibank.

Clearly concerned, NZ Post last week sweetened its deal by offering to pay the bank's fit-out costs.

Kiwibank spokesman Bruce Thompson said yesterday that there had been a good reaction to the offer, but he would not say how many franchises had signed up.

The first seven stores opened in February, but only in Hawkes Bay and Palmerston North, and all were in corporate postshops as well.

Kiwibank has said it was aiming for branches at each of the 300 NZ Post outlets, which would mean all franchises signing up.

Bank chief executive Sam Knowles said the pilot programme in Hawkes Bay and Palmerston North had given the bank valuable experience in meeting customer needs.

"The real challenge now is to help customers open accounts, set up home loans and organise term deposits as quickly and smoothly as possible."

nzherald.co.nz/kiwibank