Kiwibank supports 30,000 businesses
Growth in Kiwibank now sees it service almost 30,000 SME businesses and run its own finance company.
Kiwibank gm of business banking Peter Meggison says that in six years of operation, even during recession times, growth has been steady.
Meggison says many plumbers and electricians have taken up Kiwibank services and infrastructure and construction contractors also have business accounts.
Personal service and attention are important.
“One large contractor recently transferred to Kiwibank because he wanted to meet his banker on his own turf. The old bank had chosen to deal with them over the phone. We made three site visits and secured the business on the fourth visit,” Meggison says.
300 business join each month
The rate of business customer growth is round 300 a month which Meggison considers very good "considering very limited promotion". He says the bank's chief advantages are longer trading hours and wider availability of postshops for banking services, working to 5.30pm in most branches and also open Saturday mornings.
The main objective for the locally owned banker has been to establish business banking specialists throughout the country. Kiwibank now has 20 business banking offices from Whangarei to Invercargill, staffed by experienced people, some who have worked in banks here and some in banks overseas.
Peter says the shrinkage of the traditional banks has worked in Kiwibank's favour. Most people "want to meet their banker, want him/her to understand their business and most of all they want to show you around the operation and explain how it works.”
Despite the reservations of some banking commentators the bank has been very successful, Meggison says.
“We have a quality customer base and ... the level of delinquency is extremely low,” he says.
As well as this network, Postshop hours and the Kiwi ownership factor, generally lower fees and interest rates have worked for Kiwibank,Meggison says.
Finance arm
To assist customers (and potential customers) Kiwibank recently opened its own finance company – Kiwi Asset Finance Ltd. This is popular for financing plant and equipment as well as motor vehicles.
While standard lending criteria applies, Kiwibank will endeavour to craft a package that suits the individual business, What is required is a provable cashflow.
He ranks the bank's future and will continue to look for ways to extend its operation and improve services to the business community.