Comparative Analysis of New Zealand–Owned Banks (TSB, SBS, Co-operative, Heartland)
We evaluated four New Zealand–owned banks – TSB Bank, SBS Bank (Southland Building Society), The Co-operative Bank, and Heartland Bank – across seven dimensions: business quality, branch/ATM access, onboarding, customer satisfaction, digital banking, technology partnerships, and outsourcing/compliance risk. Each bank was scored (1–4) per dimension (higher = better) and ranked. Kiwibank, as an (unranked) benchmark, has broader scale but is cited where relevant.
| Bank | Business Quality & Outcomes | Branch/ATM Access | Onboarding Experience | Customer Satisfaction | Digital App & Features | Partnerships/Technology | Outsourcing/Compliance Risk | Total Score | Rank |
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| TSB Bank | 3 (↑ earnings & growthtsb.co.nz) | 4 (25 branches nationwideen.wikipedia.org; Allpoint ATMstsb.co.nz) | 4 (Temenos digital onboardingfintechfutures.com) | 3 (≈81% satisfactiongenesys.com, People’s Choice winnertsb.co.nz) | 4 (robust mobile app, innovation focustsb.co.nz) | 4 (Cloud/AI: Datacom Cloud X migrationdatacom.com; Genesys Cloud contact centergenesys.com; Temenos; MS Dynamics CRM) | 1 (AML compliance breach in 2021rbnz.govt.nz; moderate tech‐outsourcing risk) | 23 | 1 |
| Co-operative Bank | 1 (smallest scale; customer-owned) | 1 (essentially one branch) | 2 (digital-centric, new core system planned) | 4 (86% satisfactionconsumer.org.nz, People’s Choice winner) | 3 (modern banking app; focus on UX) | 4 (major tech investment: adopting 10x Banking corefintechfutures.com) | 4 (low risk: small scale, no major compliance issues) | 19 | 2 |
| Heartland Bank | 4 (highest profit ~$74m FY2024heartlandgroup.info; listed group) | 3 (≈9 branchesnzbanks.com across regions) | 3 (advanced digital onboarding: biometrics/DocuSignheartland.co.nz) | 1 (no public satisfaction data; assumed lower among consumers) | 2 (standard mobile/online banking; growing digital suiteheartland.co.nzheartland.co.nz) | 2 (digital partnerships like Paymark EFTPOS, JLR GFV calculatorheartland.co.nz; internal dev.) | 2 (moderate risk: diversified lending/business lines; no known breaches) | 17 | 3 |
| SBS Bank | 2 (solid mutual surplus ~$56m FY2024sbsbank.co.nz) | 2 (≈8–10 branchessbsbank.co.nz, major centers) | 1 (onboarding still manual/branch-based) | 2 (member surveys good, but below top small banks) | 1 (basic app/internet banking) | 1 (no flagship tech projects reported) | 3 (low risk: mutual bank, stable compliance) | 12 | 4 |
Key Findings: TSB Bank leads overall (score 23) with strong recent profit growth, wide branch/ATM coverage, best-in-class digital onboarding and a highly rated servicetsb.co.nzgenesys.com. The Co-operative Bank ranks second (19) largely on exceptionally high customer satisfactionconsumer.org.nz and aggressive tech upgrades (migrating to 10x’s cloud core)fintechfutures.com, despite its small scale. Heartland scores moderately (17) thanks to robust earningsheartlandgroup.info and digital initiatives (mobile app improvements, partnerships)heartland.co.nz. SBS Bank ranks last (12) mainly due to its smaller branch network and more traditional services, though it delivered steady surplus and strong mortgage growthsbsbank.co.nz.
Historical Trends (2023–2025): All four banks showed growth: TSB’s 2025 profit was up 13% over 2024tsb.co.nz and its loan/deposit growth outpaced the sectortsb.co.nz. SBS Bank’s surplus rebounded ~10% from FY23 to FY24sbsbank.co.nz after margin pressures eased. The Co-operative Bank has consistently earned top satisfaction (86% in 2024consumer.org.nz), and Heartland continues to invest in digital but saw its reported NPAT dip in 2024heartlandgroup.info. Looking ahead, TSB and the Co-op are expanding digital platforms, while SBS and Heartland focus on supporting new borrowers and tech enhancements (e.g. Heartland’s ongoing app and product upgradesheartland.co.nz).
Branch/ATM Access: TSB’s 25 branches (mainly Taranaki and major citiesen.wikipedia.org) plus fee-free access to 400+ Allpoint ATMstsb.co.nz give it the broadest physical presence. Heartland and SBS have roughly 8–10 regional branches eachnzbanks.comsbsbank.co.nz. The Co-operative Bank operates mostly online (with one branch), relying on digital channels.
Onboarding: TSB’s implementation of Temenos Infinity has cut account-opening to ~10 minutesfintechfutures.com, setting a high bar. Heartland uses biometric ID (facial recognition) and DocuSign to streamline sign-upsheartland.co.nz. The Co-op is developing new digital processes with its core upgrade, while SBS remains largely manual (branch or paper-based) – scores reflect TSB’s and Heartland’s clear lead in frictionless onboarding.
Customer Satisfaction: Consumer NZ surveys place Co-operative Bank first (86% overall satisfaction in 2024consumer.org.nz) and TSB second (around 81%)genesys.com. SBS and Heartland aren’t explicitly reported in these surveys, but all smaller/local banks generally outscore the big four. Canstar awards recognize TSB and Heartland for value productstsb.co.nzcanstar.co.nz, but independent satisfaction ratings favor Co-operative and TSB by a wide margin.
Digital Banking & App: All four offer mobile apps and online banking. TSB continually invests in digital features (e.g. high-rated credit cardstsb.co.nz). Heartland emphasizes a polished UX (75%+ app growth and frequent updatesheartland.co.nz). The Co-op and SBS have solid basic apps, though user reviews suggest TSB’s and Heartland’s are generally more feature-rich.
Partnerships & Technology (2025):
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TSB has aggressively modernized: it migrated 250+ servers to Datacom’s Cloud X (hybrid cloud) by 2023datacom.com, implemented Genesys Cloud for contact centersgenesys.com, and uses Temenos/CRM for customer onboarding.
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Co-operative Bank just announced a multi-year move to the UK-based 10x Banking cloud corefintechfutures.com, supported by Deloitte, to leapfrog legacy infrastructure.
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Heartland Bank partners include Paymark (online EFTPOS) and automotive financiers (Jaguar/Land Rover GFV calculatorheartland.co.nz); it also continually enhances its in-house digital lending platforms.
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SBS Bank relies mainly on established NZ banking software and its own app; no major new tech suppliers have been publicized.
Outsourcing & Compliance Risk: New Zealand’s largest banks are now compliant with RBNZ’s Outsourcing Standard (BS11), but the smaller NZ banks are not covered by BS11. TSB has significant IT outsourcing (Datacom cloud, Genesys CX) and in 2021 paid a $3.5m penalty for AML/CFT compliance failuresrbnz.govt.nz, highlighting potential risk. SBS and Co-operative Bank show no major compliance incidents (the Co-op’s size limits exposure). Heartland, a listed lender, has broad lending exposures (rural, reverse mortgages) but no public regulatory breaches. In our scoring, Co-operative and SBS rank safest (local ownership, no major outsourcing mandates), while TSB carries higher compliance risk; Heartland falls between.
Overall, TSB Bank leads with a balanced high score across business results, service and digital transformationtsb.co.nzgenesys.com. The Co-operative Bank is narrowly second, driven by stellar customer satisfaction and a bold tech overhaulconsumer.org.nzfintechfutures.com. Heartland Bank ranks third on the strength of earnings and ongoing digital initiativesheartlandgroup.infoheartland.co.nz. SBS Bank ranks fourth, performing solidly as a mutual lender (notably in mortgage growthsbsbank.co.nz) but with lower scores on technology and coverage.
Sources: Bank disclosures and media releases (TSBtsb.co.nz, SBSsbsbank.co.nzsbsbank.co.nz, Heartlandheartlandgroup.info), NZ customer surveysconsumer.org.nzgenesys.com, and credible press/industry reportsfintechfutures.comdatacom.comheartland.co.nzrbnz.govt.nz informed this analysis.
