Kiwibank will be cheque-free as of February next year after reaching a "tipping point".
Photo: 123RF
The bank has announced it will phase out the use of chequebooks over the next nine months. As of 30 September, Kiwibank won't issue cheque or deposit books to customers.
From 28 February next year, bank cheques will not be available and cheque deposits will not be accepted into a Kiwibank customer's account. There is also a possibility that other banks may stop accepting Kiwibank cheques.
Steve Jurkovich Photo: Supplied / Linkedin
Kiwibank's chief executive Steve Jurkovich said cheques have been used less frequently over the past five years as customers move to faster, safer and cheaper payment options.
"With less than one percent of Kiwibank payments now made by cheque, we've come to a tipping point," he said.
"We've chosen not to invest in a shrinking service and outdated technology.
"Instead, we're moving forward and equipping customers for a world that is increasingly digital."
Mr Jurkovich said Kiwibank had been developing online banking training with Stepping UP, which provides free, community-based computer classes.
Free banking workshops to aid customers' transition to online banking will be piloted in several regions before going nationwide.
"We understand cheques may still play a role in the day-to-day lives of some of our customers," Mr Jurkovich said.
"For this reason, we wanted to provide customers with plenty of time to prepare for this change."