Earlier state-owned banks

Kiwibank is similar in many respects to an earlier post office-based bank owned by the New Zealand Government. The New Zealand Post Office Bank was established in 1867. In 1987, the bank was corporatised and separated from New Zealand Post and Telecom New Zealand to form a stand-alone company – PostBank. Then in 1989 PostBank was sold by the government to ANZ.^[6]

Establishment period (2002–2010)

The bank originated from Alliance Party policy during the 1999—2002 term of the Labour-led coalition government.

Jim Anderton revealed in his valedictory speech that after the issue had previously been discussed by cabinet for months, he had spent three hours trying to convince then Finance Minister Michael Cullen, Annette King told Cullen: "Michael, Jim's beaten back every argument against the bank we've ever put up. For God's sake, give him the bloody bank." Cullen replied: "Oh, all right then."^[7][8]

Kiwibank launched in 2002 with 211 branches open nationwide by 30 June.

In 2008, one analysis suggested that Kiwibank had contributed to increased competition in the New Zealand banking sector through lower fees^[9] and improved service^{[citation needed]}. Additionally, by 2007, Kiwibank had achieved higher customer satisfaction ratings compared to the four major Australian-owned banks operating in New Zealand.^[10]

In 2008 Kiwibank unveiled an advertising campaign, "Join The Movement", which portrayed foreign-owned competitors as enemy occupiers. The New Zealand Herald called the campaign "jingoistic".^[11]

Since 2010

Kiwibank announced an after tax profit of $21.2 million for the year ended 30 June 2011.^[12]

In 2012, Kiwibank celebrated its ten-year birthday. The advertising campaign used 10-year-old Kiwis pledging what they're standing up for with New Zealand musician Neil Finn agreeing to the use of his song "Can you hear us?" re-recorded by Jeremy Redmore of Midnight Youth. It was the first time the artist had allowed one of his tracks to be used by a commercial entity. The proceeds from the first 20,000 downloads of the soundtrack went to the NZ Music Foundation of which Finn is patron.^[13]

In 2012, the bank also released an iPhone mobile banking app, following the roll out of a redesigned Kiwibank website.^[14] Standard & Poor lowered Kiwibank's credit rating one level from AA− to A+ (outlook stable)^[15] and Kiwibank reported a record after tax profit of $79.1 million for the year ended 30 June 2012.^[12]

In 2014, Kiwibank launched its "Independence" advertising campaign where it "compares itself to anyone who has ever immigrated to New Zealand".^[16]

In 2016, New Zealand Post announced a successful completion of the sale of 47 percent of Kiwibank to the New Zealand Superannuation Fund (25 percent) and the Accident Compensation Corporation (ACC) (22 percent).^[17] The $494 million deal values KGHL at $1,050 million and retains NZ Post as the majority owner of Kiwibank as well as keeping the bank fully New Zealand owned.

On 22 August 2022, the New Zealand Government purchased Kiwibank's holdings company Kiwi Group Holdings for an estimated NZ$2.1 billion. As a result, the Government acquired full control of the state-owned bank from the New Zealand Superannuation Fund, ACC, and New Zealand Post.^[18] In response to the Government's purchase of Kiwibank, KiwiSaver providers opined that the Government could have offered to partially sell shares to the public. The opposition ACT Party's leader David Seymour called for a partial sale of Kiwibank's shares to pension funds. Similarly, the opposition National Party questioned the Labour Government's ability to run Kiwibank.^[19]

Kiwibank Personal Banking

Personal banking products and services include home loans, personal loans, credit cards, everyday accounts, savings accounts, investment services and insurance products.^[20]

Kiwibank Business Banking

Business Banking products and services include business lending, cheque accounts, credit cards, investments, merchant services, payment services and insurance.^[21]

International services

This includes online and manual international money transfers, foreign exchange and Foreign Currency Accounts and travellers' cheques.