Having met Reserve Bank Governor Adrian Orr to discuss the issue last week, Jones said it appears it cannot compel trading banks to retain branches.
But he has asked Finance Minister Grant Robertson to consider the issue as part of the Government’s Monetary Policy Inquiry, whether that could be as a hub service or linked to public sector services somehow.
He is also seeking a briefing from Kiwibank about whether it could fill the void left by the four main banks, saying it was created to disrupt the hold of the Australian-owned banks.
Jones rejected claims he is harking back to the cart-and-horse days and ignoring the fact most people do their banking by phone or over the internet.
“I am more interest in the fact banks are withdrawing from regional areas despite making billions of dollars in profits.
“They should be sharing some of that upside and maintaining services in regional parts of NZ.”
Jones acknowledged previous governments invested in extending internet and cell phone services to rural areas but said regional branches still attract significant patronage.
The NZ Bankers’ Association acting chief executive Antony Buick-Constable said nationally in the last five years 70% fewer people used branches, opting instead to use online, mobile and telephone banking.
“They’re voting with their feet and that’s why some branches have been closed or reduced hours.”
But Jones said not all rural areas have adequate access to the internet.
In 2017 Crown Infrastructure Partners calculated 90,000 rural households and business could not access broadband at speeds of at least 20Mbs.
Starting this year it has contracted the rollout of enhanced broadband for 74,000 rural households and businesses with completion now scheduled for 2021.
So far mobile coverage has been improved on 1000km of highway and to 100 tourist destinations.
Wireless Internet Service Providers Association spokesman Ernie Newman said there has been significant progress improving rural connectivity but there are still gaps.
“We are way past the stage of rural NZ being isolated from the internet.”
Many rural areas have broadband access comparable with central city fibre.
