One million 'neuro-different' people failed by bank branch closures and withdrawal of cheques, select committee told

Wednesday, 7 April 2021

Guy Pope-Mayell, the chairman of the Dyslexia Foundation of New Zealand, tells MPs how stressful internet banking can be for 'neuro-different' people.

More than 1 million low-vision, elderly and “neuro-different” New Zealanders have been let down by the withdrawal of cheques and the closure of bank branches, MPs have been told.

National Party MP Andrew Bayly called for an inquiry into how branch closures and the ditching of cheques, including by state-owned Kiwibank and government agencies such as ACC and Inland Revenue, had made it harder for “vulnerable” people to manage their money lives.

Bayly called for the inquiry after hearing the story of a dyslexic Pukekohe man who was too afraid to use internet banking and who was told by his bank to drive to another town to a branch to see a teller.

“He couldn't do internet banking because he didn’t want to transpose numbers. And when he spoke to his bank they suggested he should drive to Hamilton, a distance of about 90 kilometres, which obviously made me think about what I should be doing for vulnerable people,” Bayly told Parliament’s finance and expenditure select committee.

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National Party shadow treasurer Andrew Bayly has called for an inquiry into whether 1 million older and neuro-different people are facing money-management struggles as a result of bank branch closures and the withdrawal of cheques.

Bayly called on the select committee to investigate whether enough was being done to ensure vulnerable people would still be able to manage their money lives independently after the age of cheques passed.

The big four Australian banks will all phase out cheques this year, while Kiwibank stopped issuing cheques last year, saying at the time that 99 per cent of its customer payments were made by other methods.

Bayly’s call for an inquiry was supported by Federated Farmers, Blind Low Vision NZ, Grey Power, and the Dyslexia Foundation of New Zealand.

The four groups told MPs that the people most affected by the withdrawal of cheques and the closure of bank branches were some elderly people, people with disabilities, and people who could not afford devices or who were in areas of low connectivity, like many farmers.

Banks promote internet banking as easy and convenient, but many people with neuro-difference find it is extremely stressful, MPs have been told.

Dyslexia Foundation chairman Guy Pope-Mayell said about 1 million people were neuro-different in ways that made internet banking stressful and risky.

He said the decision by Inland Revenue, ACC and Kiwibank to stop accepting cheques was callous and short-sighted and it infringed the basic human rights of about 1 million people.

About 10 per cent of the population had dyslexia, he said.

A further 20 per cent collectively had some form of “neuro-difference”, which ranged from dyslexia to traumatic brain injuries, he said.

“In a nutshell, individuals with dyslexia and other neuro-disabilities tend to find internet banking highly stressful, with fears of inputting wrong information or pushing the wrong button leading to financial loss,” Pope-Mayell said.

“The stress involved in writing a cheque is very low compared to internet banking,” Pope-Mayell said.

Writing a cheque is much less stressful for people with dyslexia than trying to make a payment via internet banking, MPs have been told.

Writing a cheque gave people time to check whether they had made mistakes or ask others to check they had got the numbers correct, he said.

Grey Power vice-president Pete Matcham said: “The withdrawal of these services, which is basically being done to bolster corporations’ financial performance, is in total contrast to the mental and emotional impact it has on individuals.

“I’ve had members come in, in tears,” he said.

“Grey Power is increasingly concerned at the move by both corporate entities and government departments to effectively exclude from access to their services anyone who cannot use digital media.”

Matchem said New Zealand banks were some of the most profitable in the world.

Half of Grey Power’s members were using cheques in the middle of 2020, when the organisation last surveyed its members.

During the hearing, MPs on the committee responded that the age of the cheque was already nearly over, with one member saying it now cost $12 to process a cheque.

ANZ will stop accepting cheques at the end of May, while Bank of New Zealand will stop accepting cheques on July 31, ASB will stop issuing cheque books on May 28, and Westpac will go cheque-free on June 25.

Alex Beijen, the mayor of South Wairarapa, told MPs the country was experiencing a withdrawal of financial services.

“It’s not just around bill payment. It's access to cash. It's access to financial advice. It’s access to financial institutions the country has relied on for 150 years that are being removed from communities,” he said.