Relocating to a new country involves a multitude of important decisions and logistical tasks. One of the most critical aspects to consider, and one of the first topics of discussion with our clients, is setting up your banking. Understanding New Zealand's banking system can help ensure a smooth transition and make managing your finances easier.
One of the first pieces of advice we offer to clients who are relocating here is to apply for a New Zealand bank account as soon as possible. Thankfully, for most, it is relatively easy to open a bank account from offshore. (1)
In our initial calls with clients, we talk through this process, outline the documents required, and explain how to activate the account on arrival in New Zealand.
By applying for an account before arriving in New Zealand, you will save yourself significant time. You will also be able to transfer funds to New Zealand ahead of your arrival and provide the account number to your new employer in advance. However, keep in mind that you won't be able to access your money until the account has been activated when you are in NZ.
To help you navigate banking in New Zealand, we asked Chantal Groothengel, Business Development & Operations Manager from BNZ’s migrant banking, to answer some of our clients' frequently asked questions.
What are the biggest challenges new arrivals to NZ face when establishing themselves financially?
One of the challenges new arrivals to New Zealand face when establishing themselves financially is ensuring they have the correct documentation to open a bank account and avoid any delays in getting set up.
New Zealand banks are required to have strict "Know Your Customer" (KYC) processes in place, so it's important to make sure you have the necessary documentation. Using a pre-arrival banking channel may mean you can identify yourself using proof of your last address in your home country, rather than a New Zealand address.
What risks are associated with banking in New Zealand?
The New Zealand banking industry is well-regulated, with several regulators involved in the financial sector. This includes the Reserve Bank of New Zealand, the Financial Markets Authority, and the Ministry of Business, Innovation and Employment (MBIE). It is worth noting that a deposit guarantee scheme has not been implemented yet but is planned to come into effect from mid-2025.
However, banks are well-capitalised, and well placed to handle potential external shocks and a downturn in the economy.
What can migrants and new arrivals to New Zealand do to protect themselves from scammers?
New Zealand may be far away from pretty much everything, but unfortunately scams have reached our shores too. New arrivals who may not be used to the ways Kiwis do things can be extra vulnerable to scams.
You can protect yourself from scammers by being vigilant and cautious when dealing with unsolicited offers or requests for personal information. It’s better to be safe than sorry. If you're unsure about the legitimacy of a request, contact your bank through its standard contact channels or get in touch with the relevant authority for advice. And if you’re making a larger payment (for example a new car), contact the organisation you are paying via known contact details to confirm the account number.
A few things to look out for:
Unexpected contact
Sense of urgency
Generic greetings and sign offs
Random offers
Suspicious attachments and links
Requests for personal information (especially login details or financial information)
What is the one piece of financial advice you'd give to a newly arrived expat or migrant?
My advice would be to get the right advice. You can’t be an expert in everything, especially in a new country. A relocation specialist is an invaluable resource who can help connect you to the right people and get you settled in. They’ll advise you on things like commuting time and access to schools and will be able to scout out temporary or long-term accommodation for you.
Talk to your bank on how to set up your banking to work for you. They’ll be able to help you reach your goals and protect your finances by recommending products and services that suit your situation. Especially if you still have tax obligations and/or assets overseas, consider getting some expert international tax advice. And you may want to consider setting up a New Zealand will to not complicate matters unnecessarily should something happen to you.
Take time to settle in, explore your new surroundings, and enjoy everything New Zealand has to offer, but don’t lose sight of your longer-term goals. Time flies when you’re having fun!
(1) Please be aware that due to international sanctions, New Zealand banks are unable to allow bank accounts to be opened offshore for persons residing in certain countries/regions. In this instance an account can be opened only after arrival in New Zealand.
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Mobile Relocation connects you with what you need to thrive in New Zealand. Contact us today to talk about how we can carry your relocation burden.
If you are a recruiter or HR Professional bringing international talent to NZ Mobile Relocation has a range of settlement support services to suit your candidates and your business - from baseline support to meet Immigration New Zealand’s AEWV Accreditation requirements (Kiwi Launch Pad) through to personalised programmes to support your most valued international employees.
Bridget is a New Zealander who has lived and worked as a diplomat in Singapore and India. After experiencing all facets of the relocation experience, she founded Mobile to work with private individuals moving to NZ and leading local and international businesses bringing in offshore talent.