7 February 2002
ASB Bank Matches Kiwibank 12 Month Home Lending Fixed Interest Rate
Statement made by Barbara Chapman, Head of Retail Banking and Marketing, ASB BANK Limited
ASB Bank will match KiwiBank’s pilot opening interest rate special of 6.1% per annum for a 12 month fixed rate home loan
for Palmerston North and Hawkes Bay customers. While we believe interest margins at these levels are not sustainable for
any bank in the longer term, we operate in an extremely competitive environment and will take an aggressive response to
competitor initiatives of this nature, as we have in the past.
KiwiBank’s claims of innovative features such as free school banking; free banking for retired people; free banking for
community organisations; free banking for home loan customers; free banking for students; no “honour” fees; and free
internal transfers are hardly new however. ASB Bank has always offered transaction fee exemptions for younger and
retired customers, and in fact more than 50% of our customers enjoy totally free or partially free transactional
banking. Further, unlike some other banks, we have never charged “honour” fees.
Other details of KiwiBank products released today are as expected, and replicate many of the initiatives already offered
by ASB Bank.
ASB Bank has been the service leader amongst New Zealand’s major banks for the past four years, and is recognised for
providing superior service and good value for our customers - merits which will be hard for KiwiBank to replicate I
suspect.
KiwiBank is tapping into the same group we identified last year, when our customer research told us some people wanted a
low cost account option. Last November we launched our low cost product ‘Streamline’ for the high number of our
customers who transact electronically. We have been very pleased with the high uptake. With no advertising or promotion
Streamline is attracting a significant number of customers every month, and we’re delighted that 60% of them, each
month, are new to ASB Bank.
Ends