Contents
Our latest report, The banking industry: A look ahead, explores the significant forces set to shape New Zealand’s banking sector in 2025 and beyond.
While much of the current discourse focuses on the implications for banks themselves, we believe several of these long-term shifts are highly relevant for CFOs and treasury teams – especially those managing funding, liquidity, and risk in an increasingly dynamic environment.
In particular, we consider the following themes to merit close attention:
Funding and liquidity – new pressures and new players
Competition for deposits is only set to intensify, with open banking, the Depositor Compensation Scheme, and the emergence of non-bank deposit takers all broadening the playing field. As banks focus on shoring up their own deposit bases and diversifying funding, we expect lending terms may become more dynamic and, in some cases, more selective. Given ongoing volatility in global markets and the risk of funding windows closing without warning, it is timely for treasury teams to review their own approach to liquidity and funding resilience.
Capital settings – a moving target
The RBNZ’s capital review is ushering in lower capital requirements, potentially freeing banks up to lend more. At the same time, the evolution of capital instruments and the growing use of risk transfer products – such as off-balance sheet securitisation – may alter the risk appetite and pricing in the lending market. Borrowers will want to keep a close eye on these developments to anticipate shifts in funding costs and availability.
Digital innovation – payments, platforms, and AI
The digital revolution is gathering pace, with digital wallets (Dosh), payment platforms (Apple Pay, Wise), and fintech solutions reshaping how payments and collections are managed. While these developments offer efficiency gains, they also introduce new integration and cybersecurity considerations. Banks’ increasing reliance on AI for fraud prevention and process automation will likewise have downstream effects for corporates – both in terms of opportunity and risk.
Regulatory change – a crowded calendar
Both the RBNZ and FMA are stepping up their supervisory approach, with a packed regulatory agenda and tight implementation timeframes. The Deposit Takers Act, open banking, and a raft of other reforms are all coming to a head. The pace of change means CFOs should expect less lead time and more need to adapt quickly as new requirements bed in.
Fraud, scams, and cybersecurity – sharpening expectations
From 30 November 2025, new consumer protection and compensation regimes for fraud and scams will take effect. With regulatory and public scrutiny on the rise, now is the moment to review your organisation’s controls and ensure your banking partners are up to the challenge.
Global alignment and cross-border funding
New Zealand’s regulators are placing greater weight on aligning with global peers, particularly Australia, in areas such as capital standards and prudential supervision. For those with cross-border funding or treasury operations, this trend is likely to shape both opportunity and compliance requirements over the medium term.
Gen Z and the shifting investor base
Gen Z is coming of age with different expectations – more financially savvy, less loyal, and highly attuned to technology and digital platforms. With 30% of Gen Z investing in early adulthood and 86% having learned about personal investing before entering the workforce, we expect this generational shift to influence not just banking, but the broader funding landscape – including retail investment in shares and bonds.
We hope you find the report a valuable resource as you consider how these sectoral changes may influence your funding strategy, treasury management, and banking relationships. If you would like to discuss any of these themes in more detail, please do not hesitate to get in touch.
