PostBank reacts to M.P.’s plea

Press, 20 October 1987, Page 3

PostBank reacts to M.P.’s plea

PA Wellington Postßank hit back last evening at the Opposition member of Parliament, Mr Warren Cooper, who is urging people to express anger at post office closings by taking business from the new corporation. The acting chairman of Postßank, Mr John Irwin, accused Mr Cooper of being "commercially naive” if he thought PostBank could compete without reducing its network of 1133 outlets.

He told Mr Cooper that Postßank accepted the challenge of becoming the country’s main “grassroots” bank, and was directly working towards Improving services and facilities.

Mr Cooper has told people angry about the proposed closing of 432

post offices to transfer business — “that is the only action that can hurt both the corporation and the Government,” he said.

He was targeting PostBank because it was interwoven with New Zealand Post, and both S.O.E.S “showed they are not interested in providing a service.” But Mr Irwin said Mr Cooper was confusing commercial and social issues.

“Customers who follow his advice will miss the benefits of innovative new products the bank has in the pipeline,” he said. “They will also miss the benefits of dealing with the bank that still has the largest network of outlets.”

Banking was one of New Zealand’s most competitive activities, and for

Postßank to prosper it had -to match products and services offered by competitors. “Banking today is not about having an extensive network of branches, but about having the technology and products which customers want,” Mr Irwin said.

"Research shows we are already strong in what is a neglected area of the market — provision of effective banking services to ordinary New Zealanders — and that is something; we ‘ want to build on.”

Postßank wanted to couple technology with high-transaction volumes so that it. becomes,a lowcost > operator. Having a realistically sized branch network was an essential part Of this process.