Close
 

Digital disruption – are Kiwi banks being challenged?

  • News
  • September 14, 2015
  • Elly Strang
Digital disruption – are Kiwi banks being challenged?

For those who aren’t sure, digital disruption is the change that happens when new digital technologies and businesses affect the value or importance of existing goods and services.

It’s happened in the retail industry time and time again – think CDs and digitally downloaded songs, video tapes and Netflix and paperback books and e-books.

Banking hasn’t yet had a turn at being disrupted – but many say it’s happening right now.

According to the Millennial Disruption Index, those dreaded, tech-savvy 18 to 34-year-olds are the ones causing the banking disruption.

Over half (53 percent) don’t think their bank offers them anything different than other rival companies.

As well as this, 71 percent of millennials would rather go to the dentist than listen to what banks are saying.

The four leading banks in the US are all featured among the top 10 least loved brands by millennials.

Most believe that the way they access their money (68 percent) and pay for things (70 percent) in the future will be totally different.

Not all are convinced banks will become completely irrelevant, though.

Just a third (33 percent) believe they won’t need a bank at all.

Nearly half are depending on tech start-ups to overhaul the way banks operate.

They reckon that innovation will come from outside the industry instead of from one of the banks themselves.

Most (73 percent) would be more excited about a company like Google or Apple bringing out a financial service than a bank.

Apple has taken this useful morsel of information and run with it, launching Apple pay last year in the US and most recently, the UK.

Google has also launched a Google Wallet, allowing customers to send people money over email.

Another sign of the changing times is the rise in financial tech, or “fintech” companies – and a lot of the pioneers in this category are coming straight out of New Zealand.

There are the market dominators, Vend and Xero, but there are also many up-and-comers.

A recent top 100 report by the Technology Investment Network showed innovative Kiwi tech companies had the top revenue growth.

Pushpay, a payment service, topped the list of hot emerging companies.

It allows users to pay anyone through a phone app that has their debit or credit card details loaded, eliminating the need to have a banking app.

Serko, another Kiwi company mentioned on the list, helps organise employees’ cash claims, mileage, allowance and corporate credit card expenses on its cloud-based system.

Other companies that­­ were listed as ones to watch included Transaction Services Group and Invenco.

There’s also peer-to-peer lending, where people can borrow from strangers at lower interest rate than a bank.

Harmoney is one of the first to delve into this in New Zealand, and another digital disruptor saw the value in it.

Trade Me acquired a 15 percent stake in the company for $7.7 million earlier this year in January.

Survival of the fittest

New Zealand banks are making genuine efforts to keep up with the times and offer digital solutions, so all hope is not yet lost.

Many banks are appealing to younger customers and demonstrating their ability to engage with social media channels – ASB is on Snapchat, while Kiwibank recently employed 19-year-old YouTube star Jamie Curry for its ad campaign.

Westpac launched an augmented-reality banking app last year.


With the app, customers can hold their debit or credit card in front of the phone’s camera and see their account details pop up in 3D.

Westpac said the app will enable customers to do 90 percent of what requires a visit to a bank online via their phone.

ASB recently gave its traditional piggybank, Kashin, a virtual makeover by introducing a new moneybox called Clever Kash.

Clever Kash aims to teach kids the concept of money in an increasingly cashless society.

Parents use an app to visualise putting notes and coins into their child’s cashless moneybox, when it’s really just going into the kid’s bank account.

ANZ took steps earlier this year to make its popular banking app goMoney available as a mobile wallet through Semble.

The contactless payments can be made through the customer’s Android phone.

It hasn’t launched yet, but ANZ started building hype for it in March this year.

With New Zealand banks competing with one another to be the most innovative and digitally savvy, none have felt the brunt of digital disruption – yet.

Most banks are aware of it, but not running scared.

After launching contactless payments in June, ANZ chief Mike Smith told The Australian he wasn’t worried about disruption in banking, as it helps keep complacency at bay.

“Am I worried about it? No. Are we very aware of it? Yes,” Smith said.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Human nature: The ethics of selling live animals instore

  • News
  • August 19, 2019
  • Jenny Ling
Human nature: The ethics of selling live animals instore

As part of our deep-dive into the pet category, we looked at the rules around selling live animals in-store. Some retailers are putting more stringent rules in place - what should you do?

Read more
 
 
News

The organic knitwear line created to save high street retail

Unlike many apparel products, From organic merino wasn’t made as a reflection of an abstract artistic concept. Instead, designer Yvonna van Hulzen of Widdess was ...

 
 

Gem Retail Hotlist: Adult Toy Megastore balances insights with privacy

  • News
  • August 19, 2019
  • Sarah Dunn
Gem Retail Hotlist: Adult Toy Megastore balances insights with privacy

Privacy is a key concern of customers across every category, but perhaps none more so than those shopping with retailers like Adult Toy Megastore. Manager Nicola Relph shared more detail about how the online adult product retailer gets the best insights out of its data while respecting customers’ privacy.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Human nature: How treating pets as people is driving a retail boom

Demographic changes have shifted the way New Zealanders treat their companion animals. Kiwi shoppers increasingly want to treat their fur babies to a human-like level ...

 
 
News

Here comes the girl gang: Paris Georgia to open New Zealand Fashion Week 2019

Many players in the fashion industry are currently engaged in rewiring their processes to match changing customer expectations around speed and access, but Paris Georgia ...

 

Mergers: Making it work

  • News
  • August 17, 2019
  • Jai Breitnauer
Mergers: Making it work

We took an in-depth look at recent retail mergers. Jai Breitnauer compiled all the advice from the feature into this handy guide on how to get one right.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}