Banking industry in New Zealand - statistics & facts
New Zealand’s banking industry is well-established, with a variety of banks and services tailored to individuals, businesses, and the government. Banks contribute significantly to the country’s economy, with the gross domestic product of financial and insurance services increasing considerably in recent years and reaching over 15.5 billion New Zealand dollars in early 2023.
The Union Bank of Australia, now ANZ, opened in Auckland in 1840 as the country’s first bank, before several other banks emerged in the decades that followed, including the Bank of New Zealand in 1861. As of 2023, there were 27 banks registered banks operating in the country, according to the Reserve Bank of New Zealand. Like the banking industry in Australia, New Zealand is dominated by four major banks: ANZ, ASB, BNZ, and Westpac, all of which are Australian-owned. The total assets of New Zealand’s Big Four banks reached close to 600 billion New Zealand dollars accumulatively in 2022, while smaller, New Zealand-owned banks reported significantly lower total assets.
With hundreds of bank branches servicing the five million people living across Aotearoa, the rise of neo-banks is unlikely to eliminate traditional banks anytime soon. Nonetheless, banks must continue to develop and evolve both in terms of the services they provide and the protections they offer against the influx of cybercrime and scams impacting bankers globally.
The Union Bank of Australia, now ANZ, opened in Auckland in 1840 as the country’s first bank, before several other banks emerged in the decades that followed, including the Bank of New Zealand in 1861. As of 2023, there were 27 banks registered banks operating in the country, according to the Reserve Bank of New Zealand. Like the banking industry in Australia, New Zealand is dominated by four major banks: ANZ, ASB, BNZ, and Westpac, all of which are Australian-owned. The total assets of New Zealand’s Big Four banks reached close to 600 billion New Zealand dollars accumulatively in 2022, while smaller, New Zealand-owned banks reported significantly lower total assets.
Banking on technology
Globally, the banking sector continues to evolve with advancements in technology. Customers can already access a wide range of banking services online, and the use of cards and other electronic payment forms such as digital wallets continue to change the way the world exchanges money. By 2024, it is forecast that there will be over 2.5 billion active online banking users globally, with online banking penetration set to reach close to 80 percent in New Zealand in the coming years. While the digitalization of the banking industry and the introduction of exclusively online banks has drawn positive feedback from many, there are still those who prefer the services of traditional, physical banks. According to the Banking Ombudsman Scheme, which handles complaints about the banking industry in New Zealand, people aged over 65 years made up almost one-quarter of bank-related complaints received in 2023.With hundreds of bank branches servicing the five million people living across Aotearoa, the rise of neo-banks is unlikely to eliminate traditional banks anytime soon. Nonetheless, banks must continue to develop and evolve both in terms of the services they provide and the protections they offer against the influx of cybercrime and scams impacting bankers globally.
