Why Non-Profits Deserve Better Banking — and Who’s Listening
It was truly and amazing day after a year’s planning and work, for Community Networks Aotearoa to launch our research on Better Banking for All. Our researcher Jane Horan and our EO Ros Rice personally had visited or talked to senior managers at six of our major banks to tell them about the huge problems Non-Profits had when trying to bank with them. All the banks knew before we launched what they would find in our report.
What followed was in our mind not the end of our research, but the start of collaborative working with these massive financial institutions towards solving some of the issues. We were aware that many problems were caused by banks reaction to the anti-money laundering legislation, but other issues were simply due to staff training problems, lack of understanding of the non-profit sector and we did hear directly from some staff members of these banks, that they thought we were too problematic and we as a sector did not make the banks any money.
This brings up many questions including the right to have a bank account, and the right to access banking. These sorts of problems have been picked up by some concerned banks, and by the Reserve Bank, and the legislation on anti-money laundering has been reviewed. But at the same time some Banks have decided not to bank For Purpose organisations anymore. (If you want to read my submission on this legislation you can find it on our website. https://www.communitynetworksaotearoa.org.nz/cna-submissions
Through the deluge of work that has continued up to today, a shining communication came our way. It was from the First Credit Union, based in Hamilton. This is not a bank but a financial institution. They had read the report and they recognised our sector needs. They wanted to talk!
Holly’s Experience with First Credit Union’s Support for Non-Profit Banking
As part of our work supporting the not-for-profit sector, I met with First Credit Union (FCU) to discuss the many challenges that non-profits face when managing their banking. These challenges include difficulties in changing signatories, as the process can be complicated and time-consuming. Verifying ID and proof of address often requires trustees to be physically present at a branch, which is particularly difficult for organisations in communities without local banks or for those facing restricted banking hours. Many organisations also struggle with inconsistent service, as they rarely deal with the same bank staff and often have to re-explain their needs each time they interact with the bank. On top of this, administrative hurdles such as receiving the wrong forms or experiencing delays in processing can create unnecessary frustration and inefficiencies.
FCU took these concerns seriously and proposed a trial to improve banking accessibility for non-profits. As part of this initiative, they introduced a dedicated point of contact for all non-profit clients, ensuring continuity and reducing the need to repeatedly explain processes. They also made it possible for organisations to complete sign-ups, signatory changes, proof of address, and ID verification entirely online. The only aspect of banking that still required an in-person visit was the deposit of cash.
To test this system, Community Networks Aotearoa (CNA) set up an account with FCU and worked closely with them to refine and improve the process where necessary. The trial proved to be highly successful. Banking was straightforward, administrative changes were easy to implement, and FCU was responsive and proactive in addressing any minor issues that arose.
After a year of using this system, we are very happy with how smoothly everything has gone. The improvements have made banking significantly easier for us, and we have decided to retain our account with FCU. Their commitment to making banking more accessible for non-profits has been evident throughout the process, and we look forward to seeing how this approach could benefit the wider sector.
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