Thousands of New Zealanders in our most vulnerable communities are struggling to set up bank accounts, according to a new report released by Westpac earlier this week.
They’re calling for the industry to make banking more accessible.
Claudia Pereira helps international students set up their new life, but it hasn’t been easy - with many struggling to open a New Zealand bank account.
"Having a bank account in New Zealand is a nightmare for them,” she said.
She said providing an address is one of the main challenges for them.
“An international student who just arrived in the country doesn't have proof of address.
“For them to pay the bond, they have to have the money to transfer; if they don't have their account here in New Zealand, they can't transfer the money.
“Most of the time, I have to help my students, so they transfer that money to my account, and I have to pay for the real estate,” she said.
A Westpac report has found more than 1% of the population or 60,000 people, are believed to be ‘unbanked’ or finding it difficult to open accounts.
This number includes rough sleepers, refugees, youth without families and former prisoners.
"I wasn't able to have a bank account because I've got several different names due to being whangai'd out as a kid," one ex-prisoner said.
Westpac chief executive Catherine McGrath said anti-money laundering requirements are having an effect.
She says that while they’re necessary, they create another barrier for already vulnerable groups.
“I think for most of us it's really unimaginable getting through life without a bank account; it's hard to get a job, it's hard to support your whanau if you don't have access to a bank account.
“That personal identification, it's being able to verify your address, all these things are key parts of the anti-money laundering laws here, all there for really good reasons but sometimes have unintended consequences.”
Now, Westpac plans to share its findings with other banks and government agencies to help make banking easy for all.
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