New Zealand Trials Community Cash Connections
Feb 29, 2024
Recognising that cash matters for choice, cost-efficacy and inclusivity, rural communities throughout New Zealand are being invited to participate in trials exploring new ways to connect people with deposit and withdrawal services.
The Reserve Bank of New Zealand (RBNZ) announced it would be funding the trials, with a key aspect being that people can access cash ‘at little or no cost to them’, recognising the particular importance of physical money in rural regions, and its essentiality nationwide at times when electricity and internet connections go down.
We know that New Zealanders, particularly in rural areas, still often rely on cash and value the certainty and convenience it provides, including when electronic options aren’t available or are off-line as we saw for large parts of the country during Cyclone Gabrielle.
RBNZ says it will be looking for two or three districts, ideally with populations below 10,000, that have lost a significant number of bank-provided cash services. It intends to work with these communities to establish their needs and develop potential solutions to trial for around 18 months.
Ian Woolford, the RBNZ’s Director of Money and Cash, observes that ‘electronic payments generally add to retailer and customer costs’, meaning that—in addition to supporting choice, inclusivity and resilience—cash may also offer cost benefits that are being recognised by the new initiative.
As well as ensuring cash remains available and easy to use, keeping it circulating within communities is more cost and time efficient for everyone, and it’s better for the environment due to lowered demand for cash-related freight or travel.