What Does Phasing Out Cheques Tell Us About Finance in New Zealand?
Keeping up with financial news can be difficult in today’s 24-hour culture, but one issue that has ignited opinion in New Zealand is the phasing out of cheques. It was announced in February 2020 that cheques would be phased out by Kiwibank as a move towards a semi-cashless economy. Following this, ANZ and BNZ also committed to getting rid of cheques – with the latter estimating it would be accomplished by July 2021. But what does the phasing out of cheques mean for New Zealand and show us about the future of banking in the country?
Should Cheques Be Phased Out?
The phasing out of cheques makes sense, some would argue, as banking is moving towards a wholly digital structure. New Zealand banks are generally praised for being good (compared to other countries) and have ensured that they have digital arms to accommodate younger, digitally-savvy customers.
New Zealanders can also use POLi - https://www.polipay.co.nz/ - to make real-time bank transfers without a credit card – and have been able to since 2007. So, this shows that there has been a long-held commitment to alternative methods of finance and modern payments. The need for cheques is subsiding.
Modern Forms of Finance are Popular
Alternatives to traditional banking are common among other aspects of society. Sometimes the range of payment methods available can be used by customers to make a purchasing decision or to choose a particular brand. For example, customers have a range of casinos to choose online for no-deposit bonuses. To help sift through these options, players could consider the deposit methods that might be allowed. These may include traditional bank transfer as well as e-wallets. This could help a player choose which site they want to sign up to claim the no-deposit bonus from.
Could Ditching Cheques Be Bad?
However, some detractors claim axing cheques would be detrimental. The charity world is also concerned about cheques being phased out as they are their main form of finance. Would people be as altruistic with digital money transfers as they are with cheques?
According to reports at https://www.stuff.co.nz/national/, charities look set to lose $1.4 billion in donations if cheques are phased out completely. This is mainly because older donors are more likely to pay with cheques. But older people, in general, are more likely to donate to charities. The Fundraising Institute of New Zealand suggests that cheques make up 90% of charities’ payments.
Phasing out cheques may benefit some vendors who want the money into the account immediately. But it could hinder those who want to make large purchases or cash exchanges. Most banks are planning on going through with it. Perhaps ANZ has not committed to a timeframe to see what the ramifications faced by other banks might be. Ultimately, the economy is moving towards a digital approach and many customers find it easier to manage than analogue methods such as cheques. Perhaps if provisions are made for those who are reliant on cheques, the transition could be seamless.
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