Dan Huggins: BNZ Chief Executive on decision to keep branches open 5 days a week

The Bank of New Zealand is extending the opening hours of part-time branches. 

The bank put an emphasis on call centres and digital services after closing 38 branches during the height of the pandemic.  

BNZ Chief Executive Dan Huggins told Jack Tame “We’ve heard from our customers – particularly small businesses – that they want to talk to our people more often” 

Huggins said “four or five years ago, we saw a demand for digital – now we've taken the feedback, we’re putting more people into our branches.” 

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Episode Transcript

Speaker 1 (00:00):
And it's back to the future in a way, at
the very least for ben Zed. The bank today announced
that all of its branches nationwide will open at least
five days a week by April of next year. The
bank says the move is a response to growing customer
demand for more face to face interactions and ben Z
chief executive Dan Huggins is with us now.

Speaker 2 (00:19):
Good day, Dan, good Jack, Thanks for having me nus
to talk to you.

Speaker 1 (00:22):
Yeah, and nice to be speaking with you. Talk us
through the changes. What are you guys doing.

Speaker 2 (00:26):
Well, Look, we've we've got about twenty three branches throughout
the country that previously have been on reduced days, and
we've heard from our customers, particularly small businesses, that they
want to talk to our people more often. So we're
opening the month for five days a week.

Speaker 1 (00:40):
So talk us through why they were working reduced days
or reduced hours in the first place.

Speaker 2 (00:45):
You know, look, probably four or five years ago, we
saw that there was quite a big shift of demand
towards online, towards digital and coll center. So you know,
we moved in response to that to put more people
into those centers to support custostomers. Now we've taken the feedback,
and we are putting more people into our branches so

(01:06):
we can also open those whilst sustaining the services and
digital and those course centers.

Speaker 1 (01:10):
So you'll be sustaining those services. Does that mean that
you'll be keeping the resource for the digital services and
the cour centers the same as it has been.

Speaker 2 (01:18):
That's right. Yeah, So there's there's the resources that are
in those areas, all of our people that are certain
people in the cour centers, and the hundreds of people
we've got supporting digital they all stay, and then we're
putting more people into the branches to get them open.

Speaker 1 (01:31):
And so why do you think why do you think
attitudes have changed just because at the end of the
pandemic people went back to wanting face to face interactions.

Speaker 2 (01:39):
Yeah, there's a little bit of that. There's there's also
we've been growing the banks, we've got more customers, and also,
you know, there are other things happening. There's a bit
more scams to want a bit more face to face contact.
You know, there's certainly been a change in interest rates.
So with mortgages actually that that face to face conversation
is very very helpful for people.

Speaker 1 (01:56):
Oh that's interesting. So what are the sort of main
things that people are actually coming into for those those
personal interactions. Is it is it stuff around mortgages for the.

Speaker 2 (02:04):
For the personal side of you, it's things around mortgages
and help with transactional accounts to cash flow management and
there on the small business side, you know, it's how
do I grow my business? How do I manage cash flows? Again?

Speaker 1 (02:15):
And what is the kind of sense that you are
getting from around those branches around the country as to
as to how people are feeling in this economic moment.

Speaker 2 (02:26):
Look, it's it's hard. I think that's that's the message
that we're seeing from customers. I think many people are
getting by, but they're having to make really tough decisions
about how they manage their cash flow so that they
can so that they can get through. But it's certainly
pretty challenging out there for everyone.

Speaker 1 (02:40):
Do you see anything to feel kind of positive or
optimistic about on the horizon?

Speaker 2 (02:45):
Look, I mean, we're certainly on over the medium term,
really optimistic about New Zealand. We've got amazing people who
are super innovative, great businesses, So you know, over over
the medium term we've got huge comfort in New Zealand
and huge aspirations for KIWIS and how the economy will
compete globally and grow. But it's a difficult period of

(03:05):
adjustment as we're trying to get inflation down those into
that band and obviously interest rate to high and having
an impact on people throughout it.

Speaker 1 (03:14):
Yeah, it's really tricky. So it's a staggered transition for
your branches around the country. They're going to be open
from nine point thirty until four, minimum of five days
a week, and you're going to be starting off with
some of your branches in Regional New Zealand.

Speaker 2 (03:28):
Right, that's right. Yeah, so there's seven branches throughout Regional
New Zealand. Some branches are open seven days a week,
so all the branches will be open at least five,
but there's obviously some throughout the country that are open seven.
We've said April and we'd like to have it done
next year, but we're going to try and do it
much faster than that. It just all depends on hiring
people and chaining them up, so that's the timing thing there,

(03:48):
but hopefully we'll get done a bit faster than that. Yeah.

Speaker 1 (03:50):
Fantastic, Hey, thanks so much, Dan, really appreciate your time.
That's Dan Huggins, who is the CEO of B and Z.
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