Six councils push to buy Kiwibank franchises

Six councils push to buy Kiwibank franchises
Porirua City Council is leading a push by 6 City and District Councils to set up Kiwibank and NZ Post franchises in council offices. Kiwibank has confirmed reports that Porirua City Council under CEO Roger Blakeley is leading the push, which would see Porirua joining with North Shore City, Thames Coromandel District Council, Opotiki District Council, Manukau City Council and the Far North District Council to set up Kiwibank branches in their offices.. Kiwibank spokesman Bruce Thompson said Kiwibank already had similar arrangements with councils in Bluff in Southland and Oxford in Canterbury where franchise offices were set up in council offices. There are already 310 Kiwibank branches nationwide. "We look at any proposal where we can extend our network where it is financially viable," Thompson told interest.co.nz. "If it's viable and it can enable us to bring banking to areas without banking services then we'll look at it," he said. Franchisees typically pay the establishment costs of the branch, including refurbishment, security and IT costs. The franchise owner then receives a commission for each transaction and incentive payments for writing home loans and other products. * This article was first published in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.

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