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Kiwibank to ditch cheque use from 2020

Kiwibank has announced it is phasing out cheques for its customers and will go cheque free from 2020.

February 28, 2020 will be the final date customers can use cheques to deposit into a Kiwibank account, and the bank will stop issuing cheque and deposit books from September 30 this year.

Kiwibank CEO Steve Jurkovich said in a statement cheque use has been "steadily declining" over the last five years, as more customers make payments electronically. He said less than one percent of Kiwibank payments are made by cheque.

"We’ve chosen not to invest in a shrinking service and outdated technology, instead we’re moving forward and equipping customers for a world that is increasingly digital," said Mr Jurkovich.

Customers still loyal to their cheque books will have nine months to adjust to other payment methods.

The bank has partnered with the Digital Inclusion Alliance to provide Stepping UP workshops, which are free online banking training for communities.

Kiwibank customers who have used cheques more than five times in the past year will also receive a letter advising them of the changes.

Other banks may also stop accepting Kiwibank cheques by next February.

Cheque Source: istock.com