Banks working to lift barriers to Māori finance
Banks across New Zealand are introducing targeted strategies to improve Māori Access to Capital (MA2K), according to a new snapshot from the Reserve Bank of New Zealand.
The snapshot, published as part of RBNZ’s broader te ao Māori and financial inclusion work, provides a qualitative overview of the sector’s efforts to reduce systemic challenges for Māori businesses.
While the Māori contribution to the economy reached $32 billion in production GDP in 2023, many Māori enterprises still face difficulties securing funding.
These challenges stem from factors such as rural locations, smaller or newer business structures, and cultural-specific hurdles like lending on whenua Māori.
The MA2K snapshot covers seven banks that are part of Tāwhia the Māori Bankers Rōpū – ANZ, ASB, BNZ, Heartland, Kiwibank, TSB and Westpac – and was compiled on a voluntary “best-endeavours” basis to establish a baseline for sector-wide progress.
RBNZ calls for stronger sector data and transparency
Acting assistant governor for financial stability Angus McGregor (pictured left) said the report aims to improve the banking sector’s understanding of MA2K and help raise standards across the board.
“The measures in the snapshot show the steps some banks are taking to remove unnecessary barriers for Māori, helping to lift the entire sector in supporting MA2K and financial inclusion more broadly,” McGregor said.
The snapshot draws on the voluntary contributions of participating banks and outlines a range of initiatives already underway. These include the creation of Māori-focused roles and business strategies, internal staff training on te reo Māori, tikanga, and the Māori economy, and enhanced efforts to foster Māori leadership and customer engagement.
Banks also reported Māori representation in senior leadership and governance, with internal education programmes and targeted recruitment initiatives helping strengthen cultural capability and pipeline development.
Progress acknowledged, but more work needed
The findings revealed that some banks are tailoring financial products to support lending on whenua Māori and delivering financial literacy programmes that incorporate te reo and tikanga. The average Māori employee representation across the seven banks is 8%, though individual results vary from 6.2% to 10.7%.
Despite encouraging developments, RBNZ emphasised the need for more comprehensive data and stronger business identification practices across the sector.
The snapshot showed that 31.1% of Māori businesses sought debt financing, compared with 25% of non-Māori businesses. Of those, 89.8% received funding on acceptable terms, slightly below the 90.7% for non-Māori, highlighting a persistent equity gap.
“There remains plenty of work to be done to continue to reduce any unnecessary barriers for Māori and we encourage banks to improve their data relating to Māori access to capital and enhance their practices around Māori business identification,” the report said.
Supporting housing and business lending on Māori land
The Reserve Bank said its work aligns with broader government expectations for increased collaboration with industry to support inclusive financial outcomes.
“This work is in line with the 2025 Letter of Expectations from the Minister of Finance for the Reserve Bank to continue its collaboration with industry stakeholders to pursue competition enhancing initiatives, including reducing barriers to lending for housing on Māori freehold land,” said RBNZ Governor Christian Hawkesby (pictured right).
The snapshot was developed in collaboration with Tāwhia – the Māori Bankers Rōpū – and builds on the Reserve Bank’s 2022 MA2K work programme. RBNZ reiterated that sustained progress would require support from across the entire sector.
“Impact requires a whole-of-sector approach, so we furthermore welcome the opportunity to work with other organisations to support this ongoing work programme,” RBNZ said.
