Category: MIL-OSI

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The cost of returning to school and work put pressure on households this year, with 70% of those who faced these expenses reporting negative impacts, according to a BNZ survey.

The survey found that of the 48% of respondents who faced start-of-year expenses in 2025, nearly one in three (29%) reported feeling pressure when deciding what to pay, how to pay, and when to pay. To manage, 37% turned to Buy Now Pay Later (BNPL) services, credit cards, and other high interest lending.

“The financial pressure at the start of the year is very real for some households, especially after the holiday period when budgets are already stretched,” says Anna Flower, Executive for Personal and Business Banking at BNZ.

“For some, these pressures led to difficult sacrifices – 14% of affected households reported selling things to help meet these costs,” she says.

The biggest start-of-year expenses were stationery (53%), followed by transport (42%), school and work uniforms (42%), and technology-related costs (40%).

Budget service sees impact on families and seniors

“The findings from the BNZ survey mirror what we’re seeing on the frontlines,” says Claudette Wilson, General Manager of North Harbour Budgeting Services (NHBS).

“2025 has been challenging for parents, with many turning to Buy Now Pay Later schemes and other high-interest credit options that can create longer-term financial strain.

“Perhaps most concerning is seeing children excluded from essential school activities because their parents simply can’t afford them,” Wilson adds.

“We’re witnessing families forced to choose between paying rent, putting food on the table, or covering basic school costs like technology, books and camp fees. With the ongoing cost of living pressures, some families simply can’t stretch their budgets to cover all these necessities.

“We’ve also identified a concerning trend that’s often overlooked – a significant increase in seniors over 65 seeking our support because they’re raising grandchildren. These older New Zealanders, who should be enjoying retirement, are instead navigating school uniform purchases and technology requirements, creating substantial financial pressure on fixed incomes.”

Wilson encourages those feeling financial pressure to reach out for support. “NHBS offers free, confidential financial guidance to anyone struggling with these costs. Our team can help with personalised budgeting solutions, negotiate with creditors if needed, and provide ongoing support as circumstances change.”

Planning ahead can ease financial pressure

While the costs can be a significant burden, the survey shows many households are finding ways to manage. Of those with start-of-year expenses, 57% took proactive steps, including 48% saving in advance and 17% spreading payments over time.

Flower says saving even a small sum each month can make a big difference when new year costs roll around.

“Putting aside a little each month can ease the financial pressure when these costs come around. Even better, using a dedicated high interest savings account can help these funds grow with interest throughout the year, giving families a bit extra when costs arrive.”

Practical tips for managing start-of-year costs

• Plan ahead – If possible, set aside a small amount each month and use high-interest savings accounts to help grow your money
• Use budgeting tools – use digital budgeting tools to track and categorise back-to-school or work costs to avoid overspending
• Explore your options – Check with schools about payment plans, second-hand uniform programmes or community exchanges
• Research tech choices – Ask if there are any special deals available through your child’s school, or consider quality refurbished technology to keep costs down

 

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Source: BNZ Voice customer panel survey, 18^th February – 2nd March 2025. Total responses: n=300 respondents. The profile of participating customers was not controlled for this survey. 

 

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From streaming services to gym memberships, keeping track of subscriptions and recurring payments can be a challenge. BNZ is making it easier by becoming the first New Zealand bank to adopt the latest Payments NZ open banking standard.

The new standard allows for recurring payments to be processed directly between bank accounts through a secure API. This allows different systems like banks, apps or third-party service providers to securely connect and share payment instructions in real time, unlocking new functionalities for businesses and customers.

To bring these benefits to life, BNZ is working with homegrown fintech BlinkPay to help businesses seamlessly integrate new payment options. Through integration with online banking, Blink AutoPay allows businesses to process regular payments from customer accounts with improved flexibility and control for both parties.

“Blink AutoPay is purpose-built to be a modern, customer-friendly solution that makes recurring bills simpler and more efficient for everyone involved,” says BlinkPay CEO Adrian Smith.

“Customers can approve payment arrangements instantly in their banking app without any paperwork hassle, set their own payment limits, and have better visibility of what’s coming out of their account and when.

“Businesses will benefit by being able to more easily offer customers subscription options that ensure bills get paid on time, every time. Whether it’s utilities, digital services, memberships, or any recurring payment, it means more reliable payments, better cashflow, and happier customers.”

Karna Luke, BNZ’s Executive of Customer Products and Service, says, “We’re excited about the opportunities this creates for businesses to build new and innovative payment experiences to best meet the needs of their customers. This is about making payments more reliable and flexible while retaining bank-grade security – ultimately making financial services work better for all New Zealanders.

“With over 250,000 BNZ customers already using secure API-connected services, this update continues to drive innovation in the country’s growing open banking ecosystem.”

For more information about BNZ’s open banking capabilities and developer resources, visit https://developer.bnz.co.nz/

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As the country’s attention turns to economic growth initiatives, Bank of New Zealand (BNZ) is scaling up its Growth Academy programme to give 1,400 businesses nationwide more tools and technology to drive strategic growth.

After a successful pilot with 250 businesses last year, BNZ is expanding its Growth Academy across New Zealand in partnership with growth navigation software company D/srupt. The Growth Academy combines hands-on workshops with sophisticated AI-powered digital tools that help businesses refine their strategy, enhance performance, and create new pathways for growth.

BNZ General Manager, Growth Sectors, Brandon Jackson says it’s a solution to the challenge most business owners face when growing their enterprise – moving from working ‘in’ their business to working ‘on’ their business.

“As New Zealand’s largest business bank, we’ve seen time and again how successful businesses thrive when owners can step back from daily firefighting to focus on strategy,” he says.

“With this expanded programme, business owners will leverage the power of AI to help them cost effectively assess their strategic drivers, understand their growth potential, future funding needs, and opportunities to strengthen their market position.”

Driving real results

The Growth Academy has already delivered meaningful results for businesses like BlueDoor, a boutique internet service provider offering a range of services to residential and business customers. As a growing company looking to strengthen their market position, they saw the Growth Academy as an opportunity to develop a more structured approach to their future expansion.

“The Growth Academy helped us take our strategic thinking to the next level,” says BlueDoor Director Mark Anderson.

“Like many businesses, we had ideas about where we wanted to go, but the programme gave us powerful tools to evaluate options effectively and build a robust strategy.”

Following their participation, BlueDoor secured nearly half a million dollars in financing from BNZ to fund their strategic expansion plans – a direct result of the clarity and confidence gained through the Growth Academy process.

“Our workshops cut through the complexity that often makes strategic planning feel overwhelming,” says Debbie Humphrey, founder of D/srupt.

“We combine practical guidance with technology to help turn big-picture thinking into concrete action plans you can actually implement.”

Leveraging AI

D/srupt’s Growth Navigation program uses AI to make strategic planning faster and more accessible for small to medium businesses.

“Our AI technology personalises recommendations for each business’s specific industry and helps owners express their strategy in language that really connects with their teams and shareholders,” explains Humphrey.

“We see this making a real difference because so many business owners struggle with applying high level business frameworks to their specific situation, and they often find it hard to put their vision into words that drive real operational change.

“What might have taken a full day of workshops can now be done in minutes. For time-poor business owners constantly juggling priorities, this means strategic planning actually happens instead of being perpetually pushed to the bottom of the to-do list.”

The 2025 Growth Academy launches on 31 March, with applications opening on March 10. It includes in-person workshops in 16 locations from Whangārei to Invercargill. Online options further extend the programme’s reach, ensuring accessibility for businesses throughout New Zealand.

The programme will run for 12 months and includes:

• In-person workshops or online learning, reaching 1,400 businesses nationwide
• Access to D/srupt’s advanced growth navigation platform and expertise to assess strategy, find opportunities, and build practical growth plans
• Guidance on funding pathways, from traditional banking to grants and growth capital
• Direct connection to BNZ’s business banking expertise and support

For more information, visit the BNZ website BNZ Growth Academy – BNZ

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BNZ today announced it is cutting its advertised 6-month fixed home loan rate to 5.89% p.a, effective from tomorrow.    

BNZ Executive Customer Products and Services Karna Luke says over the past six months, we’ve seen a spike in customers choosing shorter terms with approximately 60% of customers choosing to float or fix for 6-month terms.   

“With more customers looking to fix for shorter terms, BNZ is actively looking for every opportunity to meet customer demand.”   

“This change will be welcome news for many of our customers who are looking to take advantage of the falling interest rate environment.”   

BNZ’s new advertised 6-month rate is the joint-lowest of the five major banks* and will be available for new and existing customers to select online and in the BNZ app from tomorrow.  

Lower interest rates have also sparked more home loan activity, with more potential buyers making enquiries and seeking home loan pre-approval.   

“For all our home loan customers, our in-house Home Loan Partners provide personalised service and can deliver a 24-hour decision on new home loan applications once we’ve received all required information and completed responsible lending checks,” says Mr Luke.  

*As at 3pm, 18 February 2025.   

The changes to BNZ’s 6-month fixed home loan rate will be effective from 19 February 2025 for both new and existing customers.   

All home loans are subject to our lending criteria (including minimum equity requirements), terms and fees. An establishment fee of up to $150 may apply. 

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An act of generosity during the Great Depression is still supporting people today. In 1936, banker William Hartley Hargreaves left £12,000 to establish a trust for the families of his colleagues at the Bank of New Zealand – a fund that has grown to over $1.45 million today.

Originally created to support “indigent widows of bank officers” – it has evolved through High Court decisions in 1989 and 2023 to help BNZ staff members and their families facing financial hardship.

“The trust’s journey reflects the changing face of New Zealand society,” says Frances Ronowicz, BNZ’s Head of Social Impact.

“What began as support for widows during the Depression era now helps our people and their families in tough times. The trust has provided over $320,000 in assistance to staff and their dependents in the past decade alone.”

“Recent grants have helped colleagues access urgent family support, cope with serious health challenges including mobility needs, and rebuild their lives during personal crises. The trust also assists with essential costs during unexpected life events that can create financial strain.”

The trust’s founder, William Hartley Hargreaves, was a prominent figure in colonial New Zealand, managing BNZ branches from Thames to Temuka after joining in 1867.

Deeply connected to the communities he served, his retirement in 1913 drew what local papers called “perhaps the largest gathering of citizens ever accommodated in the Borough Council.”

Through careful management and investment, the trust has grown into a sustainable $1.45 million fund that generates ongoing returns to support future generations. This ensures the trust can continue providing assistance without depleting its capital base.

“Hargreaves’ gift has left a lasting legacy, and we’re proud to continue administering the trust in his name, providing support to our people in times of need,” says Ronowicz.

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