The Co-operative Bank

What The Co-operative Bank does

The Co-operative Bank is a New Zealand-based, 100% customer-owned retail bank headquartered in Wellington, operating under RBNZ prudential supervision and serving approximately 180,000 individual customers across the country. Originally established in 1928 as PSIS (Provident and Investment Society), the entity was registered as a bank and rebranded under its current name on 26 October 2011. Its product suite spans everyday transaction accounts (zero monthly fee Electronic Everyday), savings products (Online Saver at 0.75% p.a., Step Saver with bonus interest up to 2.00% p.a., Prize Draw Saver, Youth Dollars and Sense / Dosh at 2.30% on first $4,000), credit products (Debit Mastercard, Fair Rate Credit Card at 12.95% p.a., personal loans from 9.95% p.a., overdrafts, and owner-occupied fixed / floating / revolving credit home loans), insurance (IAG-underwritten general insurance and Co-operative Life Limited life and trauma cover), and investment products (term deposits from 1.90% to 4.70% and KiwiSaver distribution through Fisher Funds).

Distribution is digital-first via a proprietary mobile application (iOS and Android) and internet banking platform with Apple Pay and Google Pay integration, supplemented by phone banking (0800 554 554), a physical branch network including a new Takapuna Customer Hub opened September 2025, mobile mortgage managers, and Level 5-qualified Specialist Banking Advisors licensed under the Financial Markets Conduct Act 2013. The technology stack emphasises security (2-step verification, customisable security alerts, PIN-based authentication) and behavioural product design (Hide Savings Account feature).

The business model is classic retail banking: net interest income on the lending–deposit spread is the primary revenue engine, augmented by transactional fee streams (term deposit early withdrawal fees, personal loan establishment fees of $145, international payment fees of NZ$8 since October 2023, credit card annual and late fees), distribution commissions from IAG (general insurance) and Fisher Funds (KiwiSaver), and credit-related fees on overdrafts. A distinctive revenue-allocation mechanic returns a portion of profits directly to customers via rebates (NZ$1.2M in 2026, NZ$25M+ cumulative since 2013), reinforcing both the customer-owned mutual structure and switching-cost dynamics. Geographic exposure is exclusively New Zealand.

Name

The Co-operative Bank

Legal name

The Co-operative Bank Limited

Website

https://co-operativebank.co.nz

Company type

Private

Founded year

1928

Operating status

Operating

Headcount range

251–500 employees

Short description

The Co-operative Bank is a 100% customer-owned retail bank in New Zealand serving approximately 180,000 individual customers with everyday accounts, savings, mortgages, credit cards, personal loans, insurance, and KiwiSaver products distributed digitally and through a branch network including a Takapuna Customer Hub.

Ownership category

akta.pro rank

Product category

Retail Banking

NAICS

Depository Credit Intermediation (5221), Credit Unions (522130)

SIC

Personal Credit Institutions (6141)

akta.pro primary industry

Agricultural & Rural Cooperatives (Farm Credit/Co-op Banks) (FSABAEAG)

akta.pro secondary industries

Bank & Credit Union Personal Loans (Unsecured Installment) (FSAKAAAL), Bank-Affiliated Retail Wealth Management (FSAAAAAB)

Keywords

• Retail banking services
• Home loan products
• Savings accounts
• Consumer credit cards
• Insurance distribution

Headquarters

HQ city

Wellington

HQ country

New Zealand

HQ region

Oceania

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income from Lending: Interest earned on home loans, personal loans, overdrafts, and credit card balances. Variable and fixed rate products across owner-occupied and investment lending.
2. Deposit Interest Spread: Interest spread between lending rates and savings/deposit rates offered to customers
3. Term Deposit Fees: Fees for early withdrawals from term deposits
4. Personal Loan Fees: Establishment fees of $145 per personal loan application
5. Credit Card Fees: Annual fees on Fair Rate Credit Card ($20 per year), late payment fees
6. International Payment Fees: Fee for sending international payments ($8 per transaction since October 2023)
7. Insurance Distribution Commission: Commissions from IAG for distributing general insurance products (home, contents, car, landlord insurance)
8. KiwiSaver Distribution: Distribution fees from Fisher Funds for KiwiSaver product referrals

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels10 records

Core offering

The Co-operative Bank is a 100% customer-owned New Zealand retail bank offering a comprehensive suite of personal banking products: fee-free everyday accounts, savings accounts (Online Saver, Step Saver, Prize Draw Saver, Youth), term deposits, KiwiSaver distribution via Fisher Funds, Debit Mastercard and EFTPOS cards, a Fair Rate Credit Card, fixed/floating/revolving home loans, personal loans, overdrafts, and general insurance (via IAG) and life/trauma insurance (via its subsidiary Co-operative Life). The bank differentiates through a profit-sharing rebate model, B Corp certification, and ethical investment policies.

Product overview

The Co-operative Bank is a 100% customer-owned New Zealand bank offering a comprehensive suite of retail banking products and services. The product portfolio spans everyday banking (fee-free Electronic accounts), savings products (Online Saver, Step Saver, Prize Draw Saver, Youth accounts, Term Deposits), credit products (Debit Mastercard, Fair Rate Credit Card, Personal Loans, Overdrafts, Fixed/Floating/Revolving Credit Home Loans), insurance (IAG-backed general insurance and Co-operative Life life/trauma insurance), and investment products (KiwiSaver via Fisher Funds, Term Deposits). Banking access is provided through a proprietary mobile app, internet banking platform, phone banking, and branch network. The bank differentiates through customer ownership model, profit-sharing rebates, B Corp certification, and ethical investment policies.

Differentiator

Problem solved

Functional benefit

Products and services

• Electronic Everyday Account A fee-free everyday banking account with zero monthly fees and zero electronic transaction fees, designed for day-to-day spending management with optional Debit Mastercard or EFTPOS card access. For New Zealand retail customers.
• Online Saver Account A simple savings account offering the same interest rate on every dollar with no minimum balance, providing anytime access via mobile app and internet banking with no card access to discourage spending. For retail customers looking to grow savings passively.
• Step Saver Account A savings account with bonus interest for consistent saving behaviour, earning base rate plus bonus when balance grows and no more than one withdrawal is made per month (2.00% p.a. total). For disciplined retail savers.
• Prize Draw Saver Account A flexible savings account where customers receive entries into a monthly prize draw (one entry per $100 of average daily balance, chance to win $40,000) plus 0.25% p.a. interest. For retail savers seeking gamified incentives.
• Youth Accounts (Dollars and Sense / Dosh) Interest-earning savings accounts for young people aged 0-12 (Dollars and Sense) and 13-17 (Dosh), offering 2.30% p.a. on the first $4,000 saved with no account or transaction fees for under-18s. For children and teenagers building financial habits.
• Tertiary Student Package A banking package for full-time tertiary students with no transaction fees on the everyday account, Debit Mastercard with annual fee waiver, and access to the interest-earning Dosh savings account. For full-time tertiary students in New Zealand.
• International Payments International payment services enabling customers to send money overseas ($8 per transaction fee since October 2023) and receive international payments (no fee) through partner Convera, covering most countries worldwide. For retail customers with cross-border payment needs.
• Term Deposits Fixed-term investment products with terms from 1 month to 4 years, offering fixed interest rates locked in from day one with minimum deposit of $2,000 and maximum of $2,000,000 (e.g., 12-month at 3.90%). For retail customers seeking capital-protected, fixed-return investments.
• KiwiSaver (Fisher Funds) A voluntary long-term retirement savings scheme administered through Fisher Funds, offering seven investment fund options and GlidePath automatic age-based fund adjustment, with government contributions of up to $260.72 annually for eligible members. For New Zealand residents eligible for KiwiSaver.
• Debit Mastercard A debit card providing access to spend own money in person, online, and overseas with first-year annual fee waived ($10 thereafter), featuring Tap & Go, Apple Pay, Google Pay, and Mastercard security protections. For retail account holders.
• Fair Rate Credit Card A credit card with a single fair interest rate of 12.95% p.a. for purchases and cash advances, $20 annual fee, up to 55 days interest-free on purchases, and 0% balance transfer offer for 6 months on transferred balances. For retail customers seeking straightforward credit.
• EFTPOS Card A basic debit card for everyday purchases and ATM withdrawals in New Zealand and overseas with no annual card fee, secured with PIN protection. For retail customers preferring EFTPOS-only banking.
• Fixed Rate Home Loan A home loan product with fixed interest rates for set periods (6 months to 5 years), providing repayment certainty with rates starting from 4.59% p.a. for owner-occupied lending. For residential borrowers seeking predictable repayments.
• Floating Rate Home Loan A flexible home loan with variable interest rates (4.99% p.a.) allowing extra repayments or full early repayment without fees. For residential borrowers wanting flexibility.
• Revolving Credit Home Loan A combined transaction account and home loan product allowing customers to deposit and withdraw funds as needed, with interest charged only on the outstanding balance at the floating rate. For residential borrowers wanting offset-style flexibility.
• First Home Buyer Special Special home loan rates for first home buyers with owner-occupied lending from $250,000, including access to Kāinga Ora First Home Loan scheme with reduced 5% deposit requirement. For first-time residential property buyers in New Zealand.
• Personal Loans Unsecured personal loans ranging from $3,000 to $50,000 with floating interest rates from 9.95% to 17.75% p.a. based on credit history, available for terms from 6 months to 5 years with weekly, fortnightly, or monthly repayments and a $145 establishment fee. For retail borrowers.
• Overdraft A flexible backup credit facility linked to everyday accounts with arranged overdraft rate of 17.50% p.a. and unarranged rate of 22.00% p.a., with no establishment fee, no limit increase fee and no unauthorised overdraft fee. Tertiary students get interest-free up to $1,000. For retail customers needing short-term liquidity.
• Home Insurance (IAG) General insurance coverage for homes underwritten by IAG New Zealand, protecting against natural hazards, accidents, and fire. Available to retail customers through Co-operative Bank with online management via the IAG insurance hub.
• Contents Insurance (IAG) General insurance coverage for household contents underwritten by IAG New Zealand, protecting valuables against loss, theft, or damage. For retail customers seeking contents cover.
• Landlord's Insurance (IAG) General insurance for rental properties underwritten by IAG New Zealand, covering the property and contents with optional lost rent coverage. For retail customers who are residential landlords.
• Car Insurance (IAG) Vehicle insurance underwritten by IAG New Zealand covering theft and damage by fire or accident, available through Co-operative Bank with claims support via IAG. For retail vehicle owners.
• Life Plus (Life and Trauma Insurance) Life insurance with optional trauma cover provided by Co-operative Life Limited (a wholly-owned subsidiary of The Co-operative Bank), offering financial protection for customers and their loved ones. For retail customers seeking life/trauma cover.
• Loan Instalment Care Loan protection insurance underwritten by Co-operative Life Limited that covers some or all loan repayments if the policyholder is unable to work due to illness or injury. For retail borrowers seeking protection for personal, home or overdraft loans.
• Mobile App A proprietary mobile banking application available on iPhone and Android, offering 24/7 access to account management, payments, transfers, card controls, savings goals, and access to the IAG insurance hub. For retail customers who prefer mobile-first banking.
• Internet Banking Online banking platform providing secure access to account management, payments, transfers, KiwiSaver tracking, and insurance management with 2-step verification security. For retail customers who prefer web-based banking.

Quantifiable outcome

• Returned over $25 million to customers since 2013 through profit-sharing
• +2 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature6 records

Partnerships

Four partnerships are on record, tiered core.

• Fisher FundscoreGTM or Marketing PartnerPartnership for KiwiSaver distribution - The Co-operative Bank acts as distributor for Fisher Funds KiwiSaver Plan. Fisher Funds is one of New Zealand's largest specialist investment managers operating for over 25 years. Customers can join Fisher Funds KiwiSaver Plan through Co-operative Bank with account tracking via internet banking.
• IAG New ZealandcoreGTM or Marketing PartnerPartnership for general insurance distribution - IAG underwrites home, contents, landlord, and car insurance products distributed through Co-operative Bank. Customers can access IAG insurance hub via mobile app and internet banking. Claims handled by IAG Claims Team.
• Kāinga OracoreStrategic or Co-development PartnerGovernment partner for First Home Loan scheme - The Co-operative Bank is one of the handful of NZ banks participating in Kāinga Ora First Home Loan scheme, which allows buyers to purchase with only 5% deposit with loans underwritten by Kāinga Ora.
• Co-operative Life LimitedcoreStrategic or Co-development PartnerWholly-owned subsidiary of The Co-operative Bank, registered insurer regulated by Reserve Bank. Provides life insurance, loan protection insurance (Loan Instalment Care), and trauma cover products.

Scale indicators7 records

Recent moves8 records

Expansion highlights5 records

Regional players

• Nelson Building Society: NZ mutual building society operating primarily in the upper South Island with retail savings, term deposits, and home loans; shares the mutual/cooperative ownership model and product set, serving a sub-national footprint.
• Unity Money (formerly Unity Building Society): NZ mutual building society offering savings accounts, term deposits, and home loans; shares the cooperative-style ownership and retail deposit/lending model, though smaller and regionally focused.

Direct peers

• TSB Bank: New Zealand community-oriented bank offering retail deposits, mortgages, and personal banking; similar mid-tier positioning and customer-focused ethos, competing for the same retail and first-home-buyer segments.
• SBS Bank: NZ-headquartered mutual building society offering retail savings, term deposits, and home loans; comparable mutual/cooperative ownership model and similar retail banking product suite targeting everyday NZ customers.
• Heartland Group Holdings: NZX-listed NZ bank group providing retail savings, reverse mortgages, and asset finance; competes with Co-operative Bank in personal lending, savings, and term deposits, though with a more specialised product mix.
• Kiwibank: New Zealand state-owned retail bank with a similar customer-friendly, community-focused positioning and broad retail deposit, mortgage, and personal lending products; competes directly with Co-operative Bank for everyday banking and home loan customers in NZ.

Broad incumbents

• Bank of New Zealand (BNZ): Big Four NZ bank offering full retail and business banking; competes with Co-operative Bank on mortgages, deposits, cards, and personal loans and benefits from significantly larger distribution.
• ASB Bank: Major NZ retail and commercial bank owned by CBA; overlaps directly with Co-operative Bank on home loans, savings, everyday accounts, and KiwiSaver (via ASB KiwiSaver Scheme).
• Westpac New Zealand: Big Four NZ retail and commercial bank offering deposits, mortgages, KiwiSaver (via Westpac KiwiSaver Scheme), and personal lending; overlaps with Co-operative Bank across the retail product set.
• ANZ Bank New Zealand: One of NZ's Big Four banks with a full retail and commercial product suite; competes with Co-operative Bank across mortgages, deposits, cards, and personal loans, and dwarfs it in scale and branch coverage.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/user/thecooperativebanknz
• Facebookfacebook.com/coopbanknz
• LinkedInlinkedin.com/company/the-co-operative-bank
• Instagraminstagram.com/thecooperativebanknz
• Xx.com/coopbanknz

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Co-operative Bank