Māori, rural residents, and low-income groups are most affected by limited access to services
A new monitoring system developed by the Reserve Bank of New Zealand is set to provide the most detailed view yet of how well the country’s financial system is serving different communities.
The tool is designed to monitor who has access to essential financial tools – such as deposit accounts, credit, and cash services – and how that access differs by region, age, ethnicity, and income. It also offers a benchmark for tracking shifts in inclusion over time.
“When people are excluded from financial services, it can limit their ability to participate in the economy and ultimately their wellbeing. Our indicators are part of our efforts to understand and track how the financial system is serving New Zealanders,” said Kerry Watt, director of financial system assessment at RBNZ.
Initial data from the indicators reveal significant gaps. While 97% of adults in Aotearoa report having at least one deposit account, access is lower among lower-income groups, younger people, and some ethnic communities. Use of regulated credit products is also uneven – 70% of adults use them overall, but only 64% of Māori report access.
Additionally, regional inequalities were evident, with Gisborne recording the lowest access relative to population size.
The indicators also highlight challenges in rural banking access. Older residents in rural areas were found to face more difficulty depositing cash than those in cities. Meanwhile, Māori-owned businesses received only $3.5 billion in lending from the four major banks, amounting to just 2% of total business lending in the country.
The new system is part of the Reserve Bank’s broader goal to better assess the performance of the financial system beyond traditional metrics.
“Understanding and promoting financial participation is a priority for the Reserve Bank. These indicators build a fuller picture of access, use, and outcomes to support New Zealanders in having reasonable access to financial products and services that meet their needs,” Watt said.
