Why the end of cheque services might be worth worrying about.
Eleanor Bodger, QSO
Recently Kiwibank announced that their cheque service will cease on February 28, 2020. There has been little discussion
about this and there’s likely to be a landslide effect. Where one bank goes; others will follow.
The banks will all know the numbers of people such a policy will affect. There are multiple thousands of people around
New Zealand who use cheques. Kiwibank alone has said of their customers, 5,400 write cheques monthly. An important
question to ask is ‘what is the dollar value of these accounts’? I suspect it will be reasonably low for a number of
reasons, including the banks who have already sold older people the loans and mortgages they sought earlier in their
lives, and which they would have largely repaid with the accompanying interest. The once good customers risk become
dispensable.
Don’t believe everything you hear about older people being great internet adopters. Many are, but there are large
numbers who aren’t (think about cost, software and hardware upgrades, the complexity of some programmes, no one to help
when things go wrong, disability etc.). Research shows that there is an increase in digital drop off around age 75.
New Zealand has an ageing population and one thing we need to do is make sure that as people get older their
contribution remains valued and they continue to be viewed as vital members of our communities. The restorative model of
health aims to keep people out of hospitals as much as possible. Evidence continues to grow confirming that how people
feel about themselves and their place in society has an impact on their health; for better or worse.
One of the first things that cuts the rug from under one’s feet is the loss of independence. Our society values
independence.
The often gradual but cumulative effects of loss of functional independence has a big impact on mental and physical
health. And the more we remove tasks from people the more they become disempowered, disengaged and the more others need
to do for them or have oversight of them.
Imagine that you look after your own financial affairs, as you probably do. You might only get out on the rare occasion,
as you have significant disabilities, however a friend drops by and posts your mail once a week. Your only income is
National Super and an accommodation supplement. You manage your own financial affairs via your cheque book, occasional
withdrawals from the ATM; and you’re in control.
What happens if you can no longer do that? Are you going to get a family member or friend to look after your financial
affairs for you (with or without Enduring Power of Attorney)? If you set up automatic payments what happens for your
discretionary spend? Will you withdraw and carry around large amounts of cash? Will you be able to get into the
diminishing number of bank branches to complete your transactions? How will you feel?
In our society there are lots of milestones towards adulthood and being in control of your own finances is a common one.
We already know of the struggles many have when they lose their driving licence. Imagine how you’d feel if the decision
about who manages your financial affairs has nothing to do with your ability and more to do with decisions made by
others.
Kiwibank was set up principally as the ‘people’s bank’. There was an assumption of it having a social responsibility
towards the individual customer. It can resume that role again, however that will come at financial cost and may not
meet the needs of the shareholders (Shareholding of Kiwibank is 51% NZ Post, 25% NZ Super and 22% ACC.)
What do I want from Kiwibank? I want them to remain the ‘people’s bank’ and I want them to reconsider their decision. I
could be wrong but don’t think the time is right for many of our current older population. The technology is just not
smart enough, intuitive enough or cheap enough yet for them and many others.
Let’s build a society where we bring everyone along, so we all benefit from technology.
ENDS