The closure of five ASB banks is leaving customers, especially older folks, concerned about the future of banking.
The impact on communities and the digitalisation of banking has some people concerned that banks are again putting profits above the needs of the people they serve.
With more banking services now online, banks in the Auckland suburbs of Māngere Bridge, Milford, Wellsford, and Waiuku, and on Willis Street in Wellington, closed their doors last week.
There will be 80 ASB branches across New Zealand after finalising closures.
Adam Boyd, ASB executive general manager of personal banking, said the bank was investing more in digital and phone banking and is bulking up staff in high-demand branches in major centres.
“Over the past four years, we have seen customer visits to the branches we are closing steadily decline, with one of our quietest branches seeing an average of just 14 customers through the door each day.
“Closing a branch isn’t a straightforward decision, and we know there will be some customers, who still visit these branches, disappointed by this news.
“We’re committed to supporting them and ensuring they continue to receive the level of service they require going forward.
“We will reach out to customers who regularly use these branches to let them know about these changes and how we will support them through the transition.
“Members of our business banking and community banking teams will be on the ground in these branches to help support the transition, and we will work closely with customers who may need extra support, including engaging with Age Concern to offer workshops to its members.”
Older people without digital savvy and people with dyslexia and other neurodiversities tend to prefer physical banks over online banking, fearing misuse of digital platforms.
Unfortunately for those who enjoy the journey, visiting the bank is a growingly unviable event on one’s calendar. That calendar might be entirely on one’s phone in years to come.
So, what does the general transition to digital banking mean for society?
The Transition to Digital Banking
In a gradual but significant change, New Zealand’s traditional banking methods are being replaced by digital ones.
These platforms are convenient and secure, with advanced encryption technologies and multi-factor authentication methods.
New Zealand customers increasingly demand convenience and speed in their banking experiences.
Digital banking provides just that, allowing customers to manage their finances anytime, anywhere.
This shift is also driven by the rise of mobile devices, which have become integral to people’s daily lives.
Regulatory changes are also significant in the transition to digital banking in New Zealand.
The Reserve Bank has encouraged financial institutions to adopt digital technologies to improve efficiency and customer service.
They have also been implementing regulations to ensure the safety and security of digital banking platforms.
The changes aren’t without concerns. Customer expectations are changing, but not for everyone.
Cybersecurity, digital literacy, and accessibility are three significant problems, but that’s just scraping the surface.
These challenges present opportunities for innovation and improvement in the banking sector.
Adapting to Change
Adapting to the changes can be difficult. The first step towards adapting to digital banking is to embrace the technology.
Familiarising yourself with the features and functionalities of digital banking platforms could include education and awareness around online account management, mobile banking, digital payments, and more.
Digital banking platforms are generally secure, but it’s important to take steps to protect your account. This includes using strong, unique passwords, enabling two-factor authentication, and being cautious of phishing scams.
If you’re having trouble adapting to digital banking, don’t hesitate to seek help. Many banks offer customer service and support to assist with the transition.
Adapting to new technologies can take time. It’s important to be patient and give yourself time to effectively understand and use digital banking services.
Remember, digital banking aims to provide a more convenient, efficient, and secure way to manage your finances. By following these tips, you can make the most of the digital banking services available to you.
