New initiative aims to reduce barriers for underserved communities
Westpac New Zealand has launched a pilot for a basic transactional bank account aimed at helping individuals who face obstacles accessing traditional banking services.
The simplified account is designed for those who may not meet standard ID requirements or who need additional account safeguards due to vulnerable circumstances.
Catherine McGrath (pictured), CEO of Westpac NZ, said the initiative is part of the bank’s broader mission to create a more inclusive financial system.
“A bank account is like a passport to the economy,” McGrath said. “Without one, you struggle to receive work or benefit payments, pay bills or do many of the other day-to-day tasks that allow you to participate in society.”
While New Zealand enjoys high levels of banking access overall, an estimated 50,000 adults remain unbanked—often due to barriers like lacking formal ID or a fixed address, according to the World Bank.
The Reserve Bank of New Zealand has stressed the need for an inclusive system that enables all New Zealanders to engage fully in economic life.
Designed with inclusion in mind
The pilot builds on insights gathered from the Westpac NZ Access to Banking in Aotearoa and Disability and Inclusion in Banking reports, which highlighted gaps in accessibility for customers in challenging situations.
“Interviewees in that research said banks need to do a better job of serving customers who may be in challenging circumstances,” McGrath said. “We’ve taken those insights on board and are taking this next step by piloting the basic bank account.”
Westpac developed the pilot in collaboration with the Reserve Bank and with input from the broader banking industry. Referrals to the pilot will come through Westpac’s extra care team and community organisations.
Tom Bayliss, principal adviser for financial inclusion at the RBNZ, welcomed the initiative.
“An inclusive financial system is one in which all New Zealanders have reasonable access to financial products and services that meet their needs,” Bayliss said. “We would like to see other banks pilot basic bank accounts, as an important contribution to financial inclusion for underserved and excluded customers.”
Bridging the gap with education and support
The Commerce Commission’s Market Study into Personal Banking Services recommended the introduction of basic bank accounts. Westpac’s pilot supports this by offering not just simplified banking but also pathways to regular accounts.
“In some cases, these kinds of accounts may serve as a pathway, with some people ultimately able to transition to a regular bank account,” McGrath said.
To aid this transition, Westpac will offer financial education resources and encourage participation in its Managing Your Money financial wellbeing programme.
Building on Westpac’s existing access initiatives
The basic bank account pilot is the latest in a series of efforts by Westpac to improve access to financial services.
The bank recently introduced a youth-friendly account opening process in partnership with the Ministry of Social Development’s Youth Service, allowing young people living independently or caring for children to use alternative ID and verification documents.
Westpac has also partnered with Oranga Tamariki to provide similar access for children in care and with the Department of Corrections through the New Start programme, which provides newly released prisoners with bank accounts and debit cards upon reentry into society.
Nearly 500 accounts have been opened through the New Start programme so far, marking meaningful progress in connecting underserved individuals to essential banking services.
