+ NGOs badly impacted if cheques withdrawn
The move by Kiwibank to ban cheques
could badly impact the bottom line of New Zealand charities, including international NGOs, and risks a backlash.
Older New Zealanders are incredibly generous to charities, and predominantly give via cheques. They simply don't trust other ways of paying.
New Zealand is a quick adopted of new technologies, but for older New Zealanders the timelines for change need to be longer.
Kiwibank has given just nine months notice before all cheque books will be withdrawn.
In the United Kingdom, banks initially gave ten years notice of their intention to go cheque free. But after a campaign by the charity sector, and groups representing older people, play a parliamentary inquiry
, the ten-year notice was dropped for an even longer period.
The 11th-hour reprieve in the UK came as a relief to millions of consumers and businesses who wrote more than one billion cheques in Britain in one year.
According to This is Money, only 4% of car insurance and 24% of home insurance in the UK can be paid by cheque.
In New Zealand, banks could consider a longer timeframe, and no new cheque book accounts, while honouring existing customers with cheque books for their lifetime.
Here's what we know already:
- Charities, schools and tradespeople all still get cheques.
- More than 300,000 Aucklanders getting their power via Vector get an annual dividend from Entrust, and often that's via a cheque.
Help us make the case to Kiwibank and the banking sector that they can go digital without leaving older New Zealanders behind, or damaging the charitable sector in New Zealand. Let us know the following:
1. How many cheques does your charity receive each year ?
2. What is the total income generated by these cheques each year ?
3.What % of your charity’s donations are received via cheque each year ?
4.What would be the impact, to your organisation of donors being unable to use Kiwibank (or any other banks
) cheques as a form of donating ?