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Source: Reserve Bank of New Zealand
The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) has released its first voluntary Climate-related Disclosure – Ngā Whakapuaki e Pā ana ki te Āhuarangi for FY2023/24, outlining our progress in understanding, monitoring, and managing climate-related risks.
Source: Council of Trade Unions – CTU
Data released by Stats NZ today showed inflation slowed to an annual rate of 2.2%, reflecting lower petrol prices and a weaker economy, said NZCTU Economist Craig Renney.
“The data shows that petrol prices fell 8% annually, and vegetable prices fell 18% annually. These reflect both softer global demand and a return to normal harvests after Cyclone Gabrielle. Prices for discretionary spending items such as furniture, electronics, or second-hand vehicles fell. This suggests weak demand and low consumer confidence, which is exactly what you would expect when unemployment is rising,” said Renney.
“Inflation and rising costs that can’t be avoided by households kept rising much faster than the headline rate. Electricity costs are up 7.4% a year. Rates bills rose 12% last year. Pharmaceutical products rose 17% with the reintroduction of prescription fees. Housing insurance was up 20% from last year.
“Rents were the biggest contributor to annual inflation, up 4.5%. It’s clear that the landlord tax cuts aren’t working to reduce rents. Low-income households, struggling after real terms cuts to the minimum wage this year, will still be feeling the pinch of these increases.
“One of the biggest drivers of the fall in inflation was the reduction in early childhood costs associated with the new family boost payment. Without that change quarterly inflation would have risen from 0.6% in September to 0.9%. Yet we know that more than half of all eligible households aren’t claiming that support – meaning that fall is unlikely to be translating into families’ pockets for many. Petrol pricing was supported by the one-off removal of the Auckland Fuel Tax, and with rising oil prices globally that fall is unlikely to be sustained.
“Inflation is falling right now, but low-income workers might not be feeling the benefit as inflation they can’t escape keeps rising. Lower inflation is good news if it doesn’t come at a cost of much higher unemployment, which every forecast tells us will be happening.
“With inflation now being back in the target band, the Government has no reason to not invest in making sure that unemployment doesn’t happen. Anything else is a choice,” said Renney.
Source: Council of Trade Unions – CTU
“The Government accounts released today show that spending and debt continues to grow under the current Government, but there is no plan to deliver a better economy,” said NZCTU Te Kauae Kaimahi Economist Craig Renney.
“Net Core Crown Debt increased by $20bn last year, with revenue from taxation also rising by $8bn. The OBEGAL deficit increased $3.4bn last year alone, to $12.9bn.
Finance Minister Nicola Willis admitted, “The accounts show the corrosive impact of low growth and low productivity…and we are cutting back on the investments needed to lift both.” Yet there is no plan to solve this problem, Renney said.
“The Government accounts showed our overreliance on income tax and GST taxes to balance the books. Source deductions from wages increased 10.1% during the last year. The GST take increased by 4.1%. But other sources of taxation have not increased at the same rate, or have fallen in the form of corporate taxation (-5.9%). We need a better conversation about how taxes are being levied and why.” Renney said.
“Spending on welfare has increased by 8%, with Jobseeker Support expenses rising by 17%. Welfare payments would be higher if the one-off $600m cost-of-living support is removed. Unemployment is expected to rise significantly in the future, meaning that welfare expenses will be higher in the future.”
Renney said “The Government has provisioned $500m for the Cook Straight Ferry (iREX) Costs, which is only the cost of the works abandoned to date. This doesn’t include the cost of cancelling the ferry contract, nor the cost of purchasing the replacement ferries necessary. The Government is likely facing a $bn bill for that decision alone.”
“The Minister signalled new cuts in her speech at the event, while requiring new economic growth to deliver on their financial aspirations. Yet decisions like iREX show that the Government has no means of delivering sustainable growth. Health New Zealand is looking for $2bn in savings right now, yet the Government is looking for further savings in spending on top.”
“The Government’s fiscal strategy needs to change. Government debt is low by international standards, and there is no shortage of projects to invest in. These would improve employment and economic outcomes – both of which will benefit working people. Yet the Government is wedded to plan that will see unemployment rise, and investment fall. It’s time for a better plan.” Renney said.
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.
The post BNZ to provide Confirmation of Payee to customers in November appeared first on BNZ Debrief.
Source: Council of Trade Unions – CTU
NZCTU Te Kauae Kaimahi Economist Craig Renney said the decision by the Reserve Bank to cut the official cash rate by 50 basis points (0.5%) to 4.75% will be a welcome relief to workers facing higher unemployment and a struggling economy. “The Reserve Bank has been forced into a significant cut because the economy has failed to fire. Weak consumer spending, weak business investment, weak house prices, and a weakening labour market all put our economic recovery at risk.”
“The Government is expecting the Reserve Bank to do all the work and support economic growth. Rather than supporting the economy and working people through difficult times, this Government has chosen to cut spending and investment, and is happy to see unemployment rise to levels not seen for a long time. These are choices, and the Government could invest now to deliver the growth we need for the future. Simply cutting interest rates returns to the economy of the past – and all the problems it already had”.
“While many people will welcome lower interest rates, and some retailers will welcome the potential for additional spending, the rate cut is not a sign of strength in the economy but is a recognition of its weakness. We need to build a better economy, one with good work and higher incomes. Nothing in the government’s plan for cuts delivers that.” Renney said.
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.
The post BNZ cuts variable home loan rates by 0.50% following drop in OCR, customers to benefit from tomorrow appeared first on BNZ Debrief.
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:
Kai Fong says customers also have a role to play in keeping themselves safe from scams and fraud:
Top tips to stay scam savvy – BNZ will never:
The post BNZ launches new anti-scam tool to lock scammers out of online banking appeared first on BNZ Debrief.
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.”
The post New path to home ownership on Māori land: BNZ expands innovative funding framework appeared first on BNZ Debrief.
Source: BNZ statements
BNZ is offering an assistance package to customers affected by severe rainfall in the Otago region.
Available immediately, the assistance package includes:
“We understand the challenges that can be posed to households, businesses and communities as a result of severe weather events,” says Anna Flower, BNZ Executive Personal and Business Banking.
“We’ve put together a range of practical support options to help ease some of the immediate financial pressure our customers might be facing.
“We also have a range of other options available, especially for customers who are facing hardship, so I encourage people to get in touch so we can see how we can help,” says Flower.
To discuss support options, business and agribusiness customers should reach out to their BNZ Partner. Small business owners can call 0800 BNZSME, while personal banking customers can access support through BNZ’s digital platforms or by calling 0800 ASKBNZ.
BNZ PremierCare Insurance customers who need assistance can call IAG NZ on 0800 248 888 or submit an online claim https://iagnz.custhelp.com/app/bnz
With local authorities in Otago, including Civil Defence, advising locals to avoid any unnecessary travel, BNZ is temporarily closing its Dunedin branches and Partner Centre.
“It’s important that our customers and our BNZers stay safe. Our teams in Dunedin can work from home and our people who would normally be working in our branches will instead be available to support customers via telephone banking and they continue to do their banking online or through our BNZ app,” says Flower.
BNZ’s ATM network in the affected areas remains operational, ensuring customers have continued access to cash and basic banking services.
Customers can check whether their local BNZ branch is open here: www.bnz.co.nz/locations
The post BNZ offers support for Otago customers affected by severe rainfall appeared first on BNZ Debrief.
Source: BNZ statements
While many New Zealanders have heard of open banking, few understand its benefits, according to new research from BNZ.*
Open banking gives bank customers the power to control and securely share their financial data with trusted third parties like fintechs.
Access to that data means banks and fintechs can create highly tailored products and services, such as apps that offer insights into spending habits, budget planning and savings goals, or that instantly share financial information with multiple lenders, making it easier and faster to apply for a loan.
“Our survey found that while 60% of respondents have heard of open banking, only a quarter (26%) have some understanding of what it means,” says Karna Luke, BNZ Executive, Customer Products and Services.
“However, after learning more about its capabilities, nearly three-quarters (73%) expressed an interest in using open banking services.
“This shows that New Zealanders are very open to new ways of managing their finances but need the right information to feel confident about using the technology,” says Luke.
The survey also shed light on some risky practices highlighting a need for greater education. Two-thirds (66%) of respondents reported having used payment services that rely on screen scraping. This practice puts users’ data at risk by requiring them to share their online banking login credentials with third parties to access certain services.
“Open banking provides a safe and secure way to share your financial data with trusted third parties without ever having to disclose your banking login details. It’s much more secure than screen scraping, but our survey shows a big gap between awareness and understanding of open banking’s benefits, particularly around security,” says Luke.
Bridging the knowledge gap
Luke says education is key to building the trust and confidence needed to drive greater adoption of open banking and realise its benefits.
“At BNZ, we’ve been collaborating with fintechs since 2018 to develop innovative products and services that showcase open banking’s potential, and we’ve developed content and resources to inform and engage our customers about the benefits. Already, more than 250,000 BNZ customers are using apps and other services made possible through open banking.”
“While we’ve made good progress, there’s still more work to be done to educate New Zealanders about the benefits of open banking and build trust in its capabilities. This will be crucial to ensure that everyone can take advantage of the huge potential open banking offers.”
Luke highlighted the importance of the Consumer Data Right (CDR), which is currently progressing through Parliament as part of the Customer and Product Data Bill. The CDR sets rules around how customer data is shared and managed and ensures legal safeguards are in place to protect New Zealanders.
“While banks have been working hard to build the technology needed for open banking, the CDR will provide the rules and protections necessary to ensure people feel secure and confident using these new services,” Luke says.
“The Government’s commitment to investigate opportunities for early adoption of open banking by government agencies, in line with recommendations from the Commerce Commission, is also a welcome move which could significantly boost public trust and understanding.
“We’re committed to working alongside regulators and the wider industry to ensure that open banking delivers on its promise of greater financial empowerment and choice for all New Zealanders.”
For more information about open banking and BNZ’s initiatives, visit bnz.co.nz/openbanking.
*Source: BNZ Voice customer panel survey, 18th to 28th July 2024. Total responses: n=355. The profile of participating customers was not controlled for this survey.
The post Education key to open banking success, BNZ survey finds appeared first on BNZ Debrief.