Gabrielle O'Brien: Rural Women NZ CEO on the growing lack of faith in rural banks

It's thought New Zealanders' faith in rural banks is dwindling. 

The Government's requested for the Finance and Expenditure and Primary Production select committees to lead a joint inquiry into rural banking. 

Rural Women NZ says their communities are facing a range of problems including banking competition and customer service. 

Chief Executive Gabrielle O'Brien told Mike Hosking that a lot of them are losing confidence in the banking sector. 

She says they hope the inquiry can address what needs to change and restore that confidence. 

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Episode Transcript

Speaker 1 (00:00):
Now inquiry, let's bring it back home. We got an
inquiry in the banking generally with an emphasis though on
rural services. The big banks have just committed to keeping
their regional branches open for the next three years. That's
following the conclusion of that regional bank hub trial last year. Now,
one of those advocating for banks to remain in small
towns is Rural Women CEO Gabrielle O'Brien, who is with us.
Gabriel morning, good morning. Just in very general terms, that

(00:22):
announcement made by Nicola will us yesterday. Will anything do
you think come out of it? Or you hope will
come out of it? And if so, what needs to
come out of it?

Speaker 2 (00:32):
Look, I think we're hoping that there will be a
lot that comes out of it. And the inquiry Nicola
has identified competitive, most custom service, and profitabiliperity to best
three things that need to be looked at. And we
know from the feedback we get from people in rural
communities that those are all issues for them.

Speaker 1 (00:52):
How of all the issues in banking, how big a
deal in rural New Zealand is a local branch.

Speaker 2 (00:59):
It's just so important ortant that local branch is a
place where people can get good information. It's a place
where they can conduct their business without having to go
travel a long distance or not have access to the
advice that they need. It's you know, the feedback we
get is that face to face is really important. There
are still issues with connectivity in parts of rural New Zealand,

(01:21):
so digital services don't always work. So having the opportunity
to visit a branch to do your business there, to
get access to someone who understands the a rural sector
and who can help you with your questions is really important.

Speaker 1 (01:35):
It's important to explain that to the rest of us
because I get the connectivity part, but is it because
the farms are complex and you're running complex businesses and
there's a lot of changing aspects to it. That's why
you need a person who's steeped in the community understands
farming as opposed to somebody on the end of a
phone in Wellington who may may not have any clue
what you're talking about.

Speaker 2 (01:56):
That's vitally important. They are complex businesses. There are other
rural businesses that also need that advice and support, but
it is different and if there is not someone who
understands that business and how it operates. Then you know
a farming business or another rural business, then an opportunity

(02:18):
could be lost. A person can be put in a
difficult situation where they're not getting the right advice. That
puts pressure on people, and that's not a great thing.
We want rural communities and rural farms and businesses to
get really good support from their banks.

Speaker 1 (02:30):
All the stuff I'm hearing from people like fed farmers
at the moment that banks are letting rural New Zealand
down the relationship, isn't there some of the guys with
big debt, they're not getting the sort of service that
is that what you're hearing is that true?

Speaker 2 (02:43):
Look. I think that the celebrated farmers survey really demonstrates
that in terms of the feedback that they've been getting
from people, is that that is the sense that there
is just not that confidence in the banking sector. And
one of the things that we would hope from this
inquiry is that there is the opportunity for that to
be examined and see, well, you know what needs to

(03:05):
happen to change to actually restore that confidence.

Speaker 1 (03:07):
Good stuff. Gabrielanics to talk to you go well, Gabriel O'Brien,
who's the Rural Women's CEO. It's going to be For
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