July - Newsletter Entry, Ros Rice

Ros Rice • July 3, 2024

One year on from the launch of banking research

It’s hard to believe that one year out from releasing our in-depth research report on the challenging world of banking for NPFs, “Better Banking: Creating Ease of Banking for the Not-for-Profit Sector”, we’re facing the withdrawal of services to non-profits from the SBS.


https://www.stuff.co.nz/business/350292100/sbs-bank-accused-betraying-long-term-customers  

Grey Power Southland seniors advocate Stephnie de Ruyter is not happy with the SBS Bank’s treatment of not-for-profit organisation customers.
ROBYN EDIE / SOUTHLAND TIMES


This is not only in Southland, but we are fielding calls from other parts of New Zealand too about the SBS.


It’s interesting because in this year, I have had more than one Bank staff member tell me that “Banks don’t really like NGOs, as we create lots of work, and they don’t make any money out of us.” 


I positively shudder with frustration when I hear this oft-repeated rubbish. These bank staff just refuse to look at the big picture.  They refuse to understand how much money is in our sector; they refuse to see how much this sector contributes to GDP, (I don’t think they care about that); and they refuse to acknowledge that there is a thing called Social Licence.   


If they are not interested in social licence at some point, won’t we all walk away from them? What is the point of trying to negotiate an important human function like having somewhere to bank our money, if the other party isn’t interested? 


I wonder if banks realise the guy standing in front of them banking for a school rugby club could be a financial advisor in a major corporate. I wonder if they consider the effects of their decision to treat him poorly and how it will influence his decisions?  (I really know someone in this position.) 

So, the question is, what to do?  I have forwarded information about this abhorrent behaviour of the SBS to the Reserve Bank and the Financial Markets Authority, but to really kick up a fuss, everyone who has received this letter, needs to talk to their local MP and tell him/her how you feel.  I am serious here.  If you don’t take this to your local MP your opportunity to get any traction is virtually nil. Make a fuss guys! 


And if you need to move your account, contact First Credit Union, who can provide on-line bespoke banking for NGOs.  They will happily sign you up.  As this is on-line, you can’t bank cash, but that’s another story.  You can do everything else, including proving identity on-line. 


Contact Sarah Angell: 07 8344780  community@firstcu.co.na 


The withdrawal of banking services to non-profits is not merely a financial inconvenience; it directly impacts the sector's ability to function effectively. We must unite, raise our voices, and advocate for the fair treatment and supportive banking environment we deserve. 

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