Reserve Bank of New Zealand commissioned study finds recent migrants and other groups face barriers to opening bank accounts

The Reserve Bank of New Zealand has published new commissioned research on access to bank accounts, finding that practical onboarding hurdles can prevent some New Zealanders from opening an account. The report, First steps to financial inclusion, was produced by ThinkPlace New Zealand and examines the account-opening process from the perspective of frontline bank staff and customers. The research reports that recent migrants, rural communities, the elderly, people with disabilities, and trusts (including Maori trusts) are among the groups most likely to face difficulties. In a survey of 722 frontline staff, around a third said they had not been able to open an account for someone often (monthly) or very often (weekly), with barriers most commonly linked to lack of proof of address, complex paperwork, lack of photo identification, language barriers, and limited access to a bank branch; 76% of participating staff also noted being encouraged to take a cautious or very cautious approach to onboarding. The report also points to uneven awareness and use of flexibility and exceptions, with 60% of staff reporting employer policies supporting flexibility and 40% indicating such policies were absent or unclear, alongside mixed training coverage on applying flexibility. The Reserve Bank of New Zealand said the findings highlight areas for further work, including research on the annual number of declined bank account applications, and that the insights will inform upcoming initiatives on Financial Inclusion Indicators, Maori Access to Capital, and work with the Council of Financial Regulators on basic transaction accounts.