Category: Analysis

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BNZ cuts 6-month home loan interest rate

Source: BNZ statements

BNZ has today announced it is cutting its popular standard 6-month fixed home loan rate to 5.99% p.a, giving it the lowest advertised 6-month rate of the five major banks*.

BNZ General Manager Home Lending James Leydon says this change supports New Zealanders’ demand for shorter term fixed rates in a falling interest rate environment.

“Customers are paying close attention to interest rates and we’re currently seeing over 90% of customers taking out home loans on fixed terms of 12 months or less as they look to make the most of the drop in interest rates.

“We’re always looking to pass on rate reductions to our customers. Today’s rate cut will hopefully provide some welcome interest relief to customers which could help with cashflow as we head into the festive season,” he says.

BNZ has also cut its standard 1-year fixed home loan rate to 5.95%.

BNZ’s new standard 6-month and 1-year fixed home loan rates will be available from 21 November 2024 for both new and existing customers.

BNZ lending criteria (including minimum equity requirements), and terms apply. Rates subject to change. Up to $150 establishment fee and early repayment charges may apply.

*At as 7am 21 November 2024

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SINGAPORE AIRLINES’ KRISFLYER SPREADS ITS WINGS IN NEW ZEALAND WITH BNZ REWARDS

Source: BNZ statements

Singapore Airlines (SIA) and Bank of New Zealand (BNZ) have forged a new agreement, announcing BNZ’s Rewards as the inaugural banking partner for the airline’s KrisFlyer loyalty programme in New Zealand.

For the first time, BNZ Advantage Visa credit cardholders can transfer BNZ Points earned from their everyday purchases into KrisFlyer miles, to redeem for flights, KrisShop purchases, Kris+ everyday spend in Singapore and Australia, and exclusive travel experiences.

Key highlights include:

  • Direct transfer of BNZ Points into KrisFlyer miles through the BNZ Rewards portal
  • A conversion rate of 300 BNZ points to 50 SIA KrisFlyer miles
  • Utilisation of a combination of miles and cash for flight bookings
  • Option to use miles for in-flight purchases on KrisShop, offering a wide range of products from jewellery to airline exclusives, fashion, health and wellness items
  • New and existing members can link their KrisFlyer membership for mile transfers through the BNZ Rewards portal.

George Robertson, General Manager New Zealand for Singapore Airlines, said this marks a significant milestone in building out the KrisFlyer loyalty programme partner network to enhance value for eligible travellers across New Zealand.

“We are delighted to join forces with BNZ, welcoming them as our inaugural banking KrisFlyer transfer partner in New Zealand. The launch reflects our continuous efforts to enhance value and deliver superior benefits for our KrisFlyer members.

“Bringing the SIA and BNZ Rewards programmes together reflects our mutual commitment to create more rewarding experiences for our shared customer base. We look forward to continuing to enhance the programme’s value for our KrisFlyer members in the years ahead.”

Ross Jackson, General Manager Payments and Merchant Services for BNZ, also voiced his excitement about this latest addition to BNZ Rewards for customers.

“Our customers have been clear that they enjoy BNZ Reward’s wide-ranging travel options, so we are delighted to be the only New Zealand bank to offer direct transfer of BNZ reward points to KrisFlyer miles.”

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Solid result as more New Zealanders choose to bank with BNZ

Source: BNZ statements

Bank of New Zealand (BNZ) today announced a statutory net profit of $1,506 million for the 12 months to 30 September 2024, down $3 million or 0.2% which is broadly flat on the prior financial year.

This was driven by lending and deposit growth partially offset by lower net interest margins, higher operating expenses and includes the impact of the sale of BNZ’s wealth business.

BNZ CEO Dan Huggins says this is a solid result in challenging conditions, which reflects BNZ’s continued growth as more New Zealanders choose to bank with BNZ.

BNZ’s total lending increased $4.3 billion or 4.2%, with business lending up $2.0 billion or 4.6% and home lending up $2.4 billion or 4.1%. Total customer deposits increased by $3.8 billion or 4.8%.

Mr Huggins says BNZ continues to support its customers through one of the most difficult economic cycles in recent history.

“With inflation back within the Reserve Bank’s target band and as interest rates begin to fall, this will be welcome news for many households and businesses.

“However, there is always a lag between changes in monetary policy and its impact on the economy, and it will take some time for the benefits to flow through. For customers feeling under pressure our message is get in touch,” says Mr Huggins.

Backing business

Mr Huggins says businesses will be crucial to driving the economic growth that will help power the recovery.

In the 12 months to 30 September 2024, BNZ was the largest lender to New Zealand’s productive sector, with almost half of New Zealand’s total business and agri lending growth coming from BNZ.

“As New Zealand’s largest business bank, we’re proud that we have backed our business customers through the economic cycle with an understanding that while times are tough now, there will be opportunities for growth ahead,” he says.

Supporting home ownership ambitions for all New Zealanders

Mr Huggins says in addition to supporting businesses, BNZ has continued to back customers’ ambitions to buy their first or next home.

“Over the past 12 months, more than 6,500 New Zealanders have chosen BNZ to help them into property ownership, with first home buyers representing around half of that figure,” he says.

“For our existing home loan customers, we have been focused on helping them manage in the current higher interest rate environment.

“Customers are paying close attention to interest rates, and we’ve seen a significant shift towards shorter fixed term loans. Over 70% of our home loan customers are due to roll off their fixed term loans within the next 12 months.”

BNZ has also focused on unlocking home ownership on Māori land. This year BNZ launched and then expanded its innovative funding model which enables iwi, as well as individuals and whānau in Māori land trusts and incorporations, to secure home loans for housing on Māori land at standard home loan interest rates.

“We’re proud that we’ve managed to develop a solution that can not only enable home ownership on whenua Māori, but also acknowledges and protects the deep connection Māori have with their whenua,” says Mr Huggins.

Investing in open banking

With more than 250,000 customers already benefitting from BNZ’s API technology, BNZ has reinforced its market leading position in open banking. This year, BNZ was the first New Zealand bank to deliver on all industry API milestones required to enable open banking in New Zealand, having led the industry to meet each new open banking standard over multiple years.

BNZ recently announced it is backing Payap, an easy-to-use digital wallet and point of sale/e-commerce app powered by open banking and developed by Centrapay. This new way to pay and be paid, has the potential to revolutionise how New Zealanders manage their money and handle payments.

BNZ also announced it has joined forces with leading New Zealand fintech BlinkPay. BlinkPay offers seamless, cost-effective payment services which save customers time and money. BNZ’s investment will help accelerate BlinkPay’s development of new products and services powered by open banking to improve outcomes for consumers across Aotearoa New Zealand.

“These initiatives support industry competition and demonstrate BNZ’s significant investment and commitment to accelerating open banking as we continually strive to make banking simpler and easier for all of our customers,” says Mr Huggins.

An unaudited summary of financial information for the 12 months ended 30 September 2024 follows:

Bank of New Zealand Banking Group

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BNZ and BlinkPay to accelerate open banking in New Zealand

Source: BNZ statements

BNZ today announced it has joined forces with leading New Zealand open banking fintech BlinkPay.

The investment will enable BlinkPay to accelerate and scale its innovation and product development through access to BNZ’s resources and expertise.

With BNZ as BlinkPay’s new owner, co-founder Adrian Smith becomes the fintech’s CEO, ensuring BlinkPay retains its own leadership and decision-making, along with its entrepreneurial spirit and startup culture.

“As a Māori-led business, we bring unique perspective to financial innovation. BNZ understands and values this – and they’re backing our vision while enabling us to retain our startup DNA,” Smith says.

“Our kaupapa has always been about making financial services work better for all New Zealanders. BNZ’s support gives us the resources to accelerate our mission and help grow the open banking ecosystem across Aotearoa.”

BNZ CEO Dan Huggins says the investment builds on BNZ’s established leadership in open banking.

“BNZ has been at the forefront of open banking in New Zealand since 2018, with more than 250,000 customers already benefiting from innovative financial services enabled by BNZ’s open banking technology.

“This represents the next phase in our journey. With BNZ supporting BlinkPay’s innovation and agility, we can accelerate the development of new products and services that will benefit all New Zealanders.

“We’re proud to be investing in a team that has proven their ability to innovate and deliver.”The partnership will focus on developing new open banking capabilities that improve financial outcomes for consumers and businesses across Aotearoa New Zealand.

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New app set to slash merchant payment fees and transform how NZers manage their money

Source: BNZ statements

Imagine running a bustling café where every transaction not only saves you money on fees, but also automatically updates your loyalty programme, provides smart sales insights, and even puts you on the map for potential new customers.

Meanwhile, your regulars can pay their brunch bill without even bringing a wallet, quickly send their share of the brunch tab to friends, manage their bank accounts, loyalty cards and gift vouchers seamlessly in one place, and easily track their daily flat white habits.

Soon this will be the reality for New Zealand businesses and their customers with the launch of Payap – the country’s first digital wallet and Point of Sale (POS) app compatible with all New Zealand banks.

Leveraging the power of open banking, Payap offers a new lower cost, contactless way to pay and get paid. Payap makes transactions effortless: users simply scan QR codes dynamically generated on an EFTPOS terminal, enabling instant cash transfers directly from their bank account. It also provides a low-cost ecommerce solution, making it easy and affordable for businesses to accept payments online.

     

With Payap’s 0.39% payment acceptance rate, a retail business turning over $100,000 monthly could save up to $7,320 annually compared to the average 1% merchant service fee reported by the Commerce Commission. For ecommerce businesses, Payap’s 0.59% fee is approximately 80% cheaper than the percentage fees charged by some other providers.

  • Businesses using Payap also have access to a suite of powerful features, including:
  • The ability to create and manage loyalty programmes, making it easy to reward customers and build brand loyalty
  • Enhanced visibility over transactions and the ability to manage discounts and refunds through a dedicated portal
  • Increased visibility with Payap’s ‘store finder’ map, showcasing location, business details, and available offers to app users
  • Use existing hardware – Payap is supported by all leading EFTPOS providers

For consumers, Payap brings together all your accounts from New Zealand banks, as well as loyalty, and even gift cards in one easy-to-use digital wallet. It allows seamless payments from any linked account and offers a range of features that simplify money management:

  • Manage your bank accounts, loyalty, and gift cards in one place
  • Split a payment across multiple sources, combining different bank accounts, debit cards, or gift card balances, all managed seamlessly within Payap
  • Easily split bills or manage shared expenses with friends with peer-to-peer payments
  • Log all your receipts in one place and get smart insights to gain a clear view of your spending patterns
  • Level up your loyalty, with rewards automatically applied during transactions

      

Powered by New Zealand fintech Centrapay and backed by BNZ, Payap is now available for business sign-ups ahead of the March 2025 consumer launch. The onboarding process is quick and free, and businesses are encouraged to register their interest. Payap is available to all businesses regardless of who they bank with.

“Payap is the country’s first comprehensive digital payment service that leverages the power of open banking to fill a clear gap in the New Zealand market,” says Centrapay CEO Greg Beehre.

“We’re excited to introduce this innovative solution that will transform how businesses accept payments and how we manage our money.”

BNZ Executive Customer Products and Services, Karna Luke, says the potential Payap offers to both businesses and consumers is impressive.

“Our team is working closely with our business customers to onboard them before the consumer launch, and we expect thousands of businesses to be on the platform on day one when their customers start using the app.

“Payap is designed to benefit businesses across Aotearoa, and we welcome all interested businesses – from small street vendors to enterprise retailers and everything in between – to get in touch with us to explore how it can enhance their payment system and customer experience.”

Core payments, acceptance and rewards features will be available at launch, with additional capabilities like peer-to-peer payments being rolled out progressively throughout 2025.

Businesses interested in learning more about Payap can visit www.payap.com or www.bnz.co.nz/payap

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Scammers undeterred: 9 in 10 NZers targeted, but reporting surges

Source: BNZ statements

New research from BNZ highlights the unrelenting onslaught of criminal scammers facing New Zealanders, with nearly nine in ten Kiwis reporting they’ve been targeted by scammers in the past year. 

BNZ’s annual Scam Savvy survey found that 87% of New Zealanders were targeted by scams in the past 12 months, virtually unchanged from 2023 (88%).  

However, in a positive shift, New Zealanders are fighting back: despite persistent attacks, the proportion of people reporting scams to organisations like banks, police, and Netsafe, has jumped to 70%, up from 62% in 2023 and a mere 46% in 2022. 

BNZ Head of Financial Crime, Ashley Kai Fong, says, “While it’s concerning that scammers continue to target Kiwis at such a high rate, we’re pleased to see a significant increase in scam reporting.  

“This shift suggests that our efforts to raise awareness and encourage action are paying off. However, it’s crucial to remember that if you suspect you’ve been scammed, you should always call your bank immediately. Quick action can often help prevent or limit financial losses.” 

Key findings from BNZ’s 2024 Scam Savvy survey include: 

  • Government impersonation scams have increased, with 52% of respondents targeted by this type of scam in the last 12 months, up from 45% in 2023 
  • Email remains the most common scam channel, with 34% of scam victims targeted this way. 
  • Website-based scams have more than doubled, with 22% of scam victims being contacted this way, up from 9% in 2023 
  • Social media remains a significant channel for scammers, with 22% of respondents encountering scams on these platforms 
  • 1 in 8 respondents fell victim to a scam in the last 12 months, with 7% losing money 

“The tactics used by scammers are constantly evolving, so the increase in reporting is a crucial step in our collective fight against fraud – every report makes it harder for scammers to operate. We’re seeing a real shift in attitudes, with more people recognising the importance of speaking up,” Kai Fong says. 

In response to the evolving scam landscape, BNZ recently launched another anti-scam tool. The ‘online banking lock’ feature gives customers the ability to disable all online banking activity and lock access to their online banking if they suspect a scammer has gained access to their accounts. 

“This new tool – available in the BNZ app – gives customers the ability to lock their online banking while they’re contacting us, potentially speeding up the process to lock their accounts and shut scammers out,” says Kai Fong. 

The online banking lock is just one of a number of new features BNZ has introduced, including: 

  • Introducing a way for customers to verify their identity through the BNZ app when prompted by a BNZ staff member to confirm it is the bank calling. 
  • Introducing additional two-factor authentication (2FA) within internet banking for high-risk actions such as changing personal contact details, creating a new payee, editing an existing payee, or making payments to unsaved payees. This is required regardless of whether a customer has already completed 2FA in their current session. 
  • Deploying ID readers in branch to help identify fraudulent documents. 

“While we’re making progress and introducing new protective measures, our research underscores the need for continued vigilance and education. We urge all New Zealanders to stay informed about the latest scam tactics and to report any suspicious activity immediately.  

“Remember, reporting a scam isn’t just about your own protection—it could prevent someone else from becoming a victim too,” says Kai Fong. 

Keeping account details, passwords and pin numbers safe 

  • never click on links or attachments sent by someone you don’t know or that seem out of character for someone you do know 
  • keep your computer and phone security software up to date 
  • contact your bank as soon as possible if you think you’ve been scammed 

Top tips to get scam savvy – BNZ will never: 

  • email or text you links to online banking and ask you to log in 
  • send you a text message with a link to a website, or link to call us 
  • ask you for information about your PIN number, bank account number, or password 
  • ask you to verbally share the authentication codes sent to you by text or email, even with a BNZ staff member 
  • ask you to transfer money to help catch a scammer or a bank employee who is scamming customers send you a text message about account issues with a link to log in 
  • ask you to download software to access your Internet Banking remotely 
  • use international phone numbers to call or send you notifications.

The BNZ Scam Savvy research was commissioned by BNZ using the Insights HQ my2cents online research panel. Responses were collected between July 30 and August 16, 2024, with a sample size of 1,263 New Zealanders. The sample was weighted to be nationally representative on region, age and gender.

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BNZ to provide Confirmation of Payee to customers in November

Source: BNZ statements

BNZ will be one of the first New Zealand banks to provide Confirmation of Payee when it rolls out the service at the end of November.

“At BNZ we’re continuously looking for new ways to help protect customers from scammers,” says BNZ CEO Dan Huggins.

“We’re pleased to be able to deliver Confirmation of Payee as quickly as possible after it becomes available in New Zealand, adding it to the suite of tools to help our customers be safer online.”

BNZ’s other recent anti-scam features include:
• An ‘online banking lock’ feature in the BNZ banking app which allows customers to disable all internet banking and BNZ mobile app activity and lock access to their accounts if they suspect a scammer has gained access to their online accounts.
• Additional two-factor authentication (2FA) within internet banking for high-risk actions such as changing personal contact details, creating a new payee, editing an existing payee, or making payments to unsaved payees. This is required regardless of whether a customer has already completed 2FA in their current session.

Confirmation of Payee will provide BNZ customers with an extra level of assurance when making payments from one bank account to another within New Zealand.

It will help customers be confident that they are paying who they think they are before the payment is made, which will help reduce payment errors and stop some instances of scams and fraud.

From next week, BNZ will start contacting customers to let them know Confirmation of Payee is coming, what it is and how it will work.

“BNZ invests tens of millions of dollars in scam, fraud and anti-money laundering protection each year. As always, we encourage our customers to get in touch with us straight away if they think they may be being scammed,” says Huggins.

 

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BNZ cuts variable home loan rates by 0.50% following drop in OCR, customers to benefit from tomorrow

Source: BNZ statements

BNZ is making changes to its variable home loan rates, passing on the full OCR cut of 0.50%.

BNZ General Manager Home Lending Products James Leydon says today’s decision by the Reserve Bank to cut to the official cash rate and BNZ’s subsequent interest rate reduction will be welcome news for many New Zealand households.

“We are continually assessing our interest rates and looking for opportunities to pass on rate reductions to our customers. Customers will benefit from our latest variable rate change which is effective from tomorrow.

“BNZ will continue to move quickly in response to changes in external factors, including the Official Cash Rate and wholesale interest rates, to ensure we’re passing rate changes on to our customers as quickly possible,” says Leydon.

BNZ’s new variable home loan rates are effective from 10 October 2024
Previous rate: 8.44% p.a.    New rate: 7.94% p.a.

All home loans are subject to our lending criteria (including minimum equity requirements), terms and fees. An establishment fee of up to $150 may apply.

 

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BNZ launches new anti-scam tool to lock scammers out of online banking

Source: BNZ statements

BNZ is rolling out its latest anti-scam and fraud measure, launching an ‘online banking lock’ feature which gives customers the ability to disable all online banking activity and lock access to their online banking if they suspect a scammer has gained access to their accounts.

“BNZ is continually looking for new ways to enhance protection for customers and combat criminal scammers,” says BNZ’s Head of Financial Crime Ashley Kai Fong.

“While anyone who thinks they’re being scammed should call their bank straight away, this new tool – available in the BNZ app – gives customers the ability to lock their online banking while they’re making the call, potentially speeding up the process to lock their accounts and shut scammers out,” says Kai Fong.

Once the online account lock is activated, it disables all current internet banking and BNZ mobile account activity and locks all access.

To prevent scammers from regaining access, customers will need to verify their identity at a BNZ branch to regain access to their accounts.

Customers will still be able to use their cards online, instore and at ATMs while their account is locked, unless they have also chosen to block their card. To minimise disruption, scheduled payments, like rent or mortgage payments, will still go out as scheduled.

Kai Fong says BNZ invests tens of millions of dollars every year in scam and fraud protection measures.

“While there is no silver bullet in the fight against scammers, this is another tool in the anti-scam and fraud toolbox to help protect our customers. It’s just one of a number of new features, BNZ has introduced, including:

  • introducing a way for customers to verify their identity through the BNZ app when prompted by a BNZ staff member to confirm it is the bank calling
  • introducing additional two-factor authentication (2FA) within internet banking for high-risk actions such as changing personal contact details, creating a new payee, editing an existing payee, or making payments to unsaved payees. This is required regardless of whether a customer has already completed 2FA in their current session.
  • deploying ID readers in branch to help identify fraudulent documents

Kai Fong says customers also have a role to play in keeping themselves safe from scams and fraud:

  • keeping account details, passwords and pin numbers safe
  • never clicking on links or attachments sent by someone you don’t know or that seem out of character for someone you do know
  • keeping your computer and phone security software up to date
  • contacting your bank as soon as possible if you think you’ve been scammed

Top tips to stay scam savvy – BNZ will never:

  • email or text you links to online banking and ask you to log in
  • send you a text message with a link to a website, or link to call us
  • ask you for information about your PIN number, bank account number, or password
  • ask you to verbally share the authentication codes sent to you by text or email, even with a BNZ staff member
  • ask you to transfer money to help catch a scammer or a bank employee who is scamming customers
  • send you a text message about account issues with a link to log in
  • ask you to download software to access your Internet Banking remotely
  • use international phone numbers to call or send you notifications.

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New path to home ownership on Māori land: BNZ expands innovative funding framework

Source: BNZ statements

More Māori and whānau across Aotearoa will benefit from home ownership opportunities, thanks to an expanded funding framework that enables lending for housing on Māori freehold land.

Under the expanded model, individuals and whānau who meet BNZ’s standard home lending criteria can secure a home loan for housing on Māori land managed by land trusts or incorporations, at standard home loan interest rates.

This is an extension to Bank of New Zealand’s (BNZ) innovative funding model, initially developed in collaboration with Ngāti Whātua Ōrākei, to support more Māori to achieve home ownership on their whenua (land).

Whetu Rangi, BNZ Head of Māori Business, says the initiative is step forward in addressing the unique challenges Māori face when seeking finance to build homes on their whenua.

“It’s about more than just providing loans; it’s about empowering our people to create sustainable, thriving communities on their whenua.”

About Māori land trusts and incorporations

Māori land trusts and incorporations play a crucial role in the management of Māori freehold land, which covers approximately 1.4 million hectares—about 5% of New Zealand’s land area. This differs from iwi-owned land, which is typically held by an iwi post settlement entity as a result of Treaty of Waitangi settlements.

A significant portion of Māori freehold land is held in trusts and incorporations, which manage the land on behalf of multiple owners. These owners are generally connected through whakapapa (genealogy) and can number in the hundreds or even thousands for a single land block.

The collective ownership structure of Māori land has historically posed challenges for lending. This, combined with restrictions on land transferability, including those in Te Ture Whenua Māori Act 1993, has created barriers to using Māori land as security for loans. As a result, whānau have faced significant obstacles in obtaining individual home loans on collectively owned land, impeding housing development on ancestral lands for generations.

Overcoming barriers to lending

To address this, the BNZ framework uses leasehold mortgage lending practices that align with Māori land ownership legislation and enshrines agreements that ensure property is controlled by the Māori land trust, incorporations and owners, which would take over in the event of a distressed mortgage.

This approach balances the bank’s security requirements with the land rights of shareholders and beneficiaries of Māori land.

BNZ CEO Dan Huggins says extending the framework is about supporting Māori aspirations.

“Developing this framework has taken several years, requiring a significant amount of legal work, and a full understanding of the unique aspects of Māori land ownership. This model respects the collective ownership structures of Māori land and ensures that the land remains a taonga tuku iho—a treasure passed down through generations,” he says.

“We’re proud that we’ve managed to develop a solution that not only can facilitate home ownership on whenua Māori but also acknowledges and protects the deep connection Māori have with their whenua. We hope this approach is the first of many innovative solutions enabling Māori home ownership.”

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