1 00:00:00,200 --> 00:00:02,840 Speaker 1: New Zealand company Dosh is trying to become the first 2 00:00:02,880 --> 00:00:05,720 Speaker 1: New Zealand digital only bank. Dosh has started the application 3 00:00:05,800 --> 00:00:08,320 Speaker 1: process to become a registered bank in New Zealand in 4 00:00:08,360 --> 00:00:11,039 Speaker 1: the hope that it will increase banking competition. Shane marsh 5 00:00:11,280 --> 00:00:15,880 Speaker 1: is Dosh's co founder and chief executive and with us now, Hey, Shane, hy, So, 6 00:00:15,880 --> 00:00:17,959 Speaker 1: if you're digital only, what was that? 7 00:00:18,920 --> 00:00:20,600 Speaker 2: Thanks for having me, alas, You're more than welcome. 8 00:00:20,880 --> 00:00:22,639 Speaker 1: If you're digital only, does that mean you've got no 9 00:00:22,720 --> 00:00:24,599 Speaker 1: ATMs where I can take money out? You've got no 10 00:00:24,840 --> 00:00:26,120 Speaker 1: bank branches? Nothing like that. 11 00:00:27,480 --> 00:00:31,280 Speaker 2: Yeah, traditional bank has branches. You'll feed them along all 12 00:00:31,280 --> 00:00:33,640 Speaker 2: the high streets of the New Zealand cities and towns. 13 00:00:34,400 --> 00:00:37,120 Speaker 2: And these branches cost a lot of money to rent, 14 00:00:37,159 --> 00:00:41,040 Speaker 2: to maintain and to staff as well. So with the 15 00:00:41,040 --> 00:00:43,960 Speaker 2: prices that are set by a normal banking organization, they 16 00:00:44,000 --> 00:00:46,600 Speaker 2: need to cover all of these costs. A digital bank 17 00:00:46,920 --> 00:00:50,960 Speaker 2: doesn't have those branches as much lower number of staff 18 00:00:51,280 --> 00:00:54,639 Speaker 2: and therefore the price is in value to consume. It's 19 00:00:54,680 --> 00:00:55,360 Speaker 2: as much better. 20 00:00:55,640 --> 00:00:57,840 Speaker 1: Do I have the option of withdrawing cash from my 21 00:00:57,880 --> 00:00:58,640 Speaker 1: bank account though? 22 00:01:00,040 --> 00:01:03,280 Speaker 2: Yeah? Absolutely, you can remove it from your bank account 23 00:01:03,440 --> 00:01:07,399 Speaker 2: through just normal internet banking or mobile banking as people 24 00:01:07,400 --> 00:01:07,959 Speaker 2: do today. 25 00:01:08,360 --> 00:01:10,720 Speaker 1: What about what no bank card? I can't go get 26 00:01:10,800 --> 00:01:15,360 Speaker 1: twenty bucks for I don't know Lolly's. 27 00:01:15,480 --> 00:01:18,959 Speaker 2: In terms of cash, Yeah, well we find most people 28 00:01:18,959 --> 00:01:21,080 Speaker 2: are not operating with cash today and most people are 29 00:01:21,120 --> 00:01:24,480 Speaker 2: using a card or a digital card to make their payments. 30 00:01:24,680 --> 00:01:26,760 Speaker 1: I noticed that you guys say you'd become the first 31 00:01:26,840 --> 00:01:30,000 Speaker 1: New Zealand owned digital only bank. Are there others who 32 00:01:30,000 --> 00:01:31,920 Speaker 1: are not New Zealand owned who are already doing this? 33 00:01:33,480 --> 00:01:39,200 Speaker 2: The Rabo Direct, who's a Netherlands bank, And previously you 34 00:01:39,240 --> 00:01:44,160 Speaker 2: may recall Bank Direct which was owned by Australian based ASB, 35 00:01:44,880 --> 00:01:48,880 Speaker 2: which was amalgamated into ASB some four or five years ago. 36 00:01:49,720 --> 00:01:52,320 Speaker 2: So since those banks were created, there's been a lot 37 00:01:52,440 --> 00:01:55,880 Speaker 2: changed from a technology perspective. From what we've seen in 38 00:01:55,880 --> 00:01:58,720 Speaker 2: the last five to ten years across the world is 39 00:01:58,760 --> 00:02:03,840 Speaker 2: the emergence of mobile based digital banks offering the latest technology, 40 00:02:04,400 --> 00:02:07,680 Speaker 2: news services and better value for consumers and have been 41 00:02:07,840 --> 00:02:11,160 Speaker 2: wildly popular. In the UK, for example, two and every 42 00:02:11,240 --> 00:02:14,760 Speaker 2: three people have a digital only bank accounts. 43 00:02:15,639 --> 00:02:17,919 Speaker 1: What are the hurdles that you have got to overcome 44 00:02:17,960 --> 00:02:19,200 Speaker 1: in order to be cleared for this? 45 00:02:21,080 --> 00:02:23,400 Speaker 2: Yeah, so we'll be working with the Reserve Bank on 46 00:02:23,520 --> 00:02:26,600 Speaker 2: our application, and they look at a number of factors 47 00:02:26,639 --> 00:02:34,160 Speaker 2: such as our compliance and security, and also our systems 48 00:02:34,320 --> 00:02:37,200 Speaker 2: and the amount of capital, which is a cash that 49 00:02:37,240 --> 00:02:39,519 Speaker 2: we have set aside if if things don't go well. 50 00:02:40,360 --> 00:02:43,640 Speaker 2: We have our fund held in a bank today and 51 00:02:43,680 --> 00:02:46,799 Speaker 2: so those funds are secure and we're also compliant in 52 00:02:46,800 --> 00:02:51,560 Speaker 2: the same way the bankers. So we feel confident we 53 00:02:51,560 --> 00:02:53,920 Speaker 2: can get most of our quirements that there'll be a 54 00:02:53,919 --> 00:02:55,760 Speaker 2: few that will work with on the reserve With. 55 00:02:55,840 --> 00:02:58,519 Speaker 1: The Reserve Bank, how many millions do you have to hold. 56 00:03:00,240 --> 00:03:02,480 Speaker 2: To become a redgis spank In New Zealand you actually 57 00:03:02,480 --> 00:03:05,600 Speaker 2: have to hold thirty million dollars of capital, which is 58 00:03:06,160 --> 00:03:10,200 Speaker 2: a lot, particularly compared with other countries such as Australia 59 00:03:10,280 --> 00:03:13,040 Speaker 2: at fifteen million dollars the capital, or perhaps the UK 60 00:03:13,080 --> 00:03:17,079 Speaker 2: where it's only million pounds of capital. But what we're 61 00:03:17,080 --> 00:03:19,120 Speaker 2: finding in the market at the moment is that both 62 00:03:19,120 --> 00:03:21,960 Speaker 2: the Commerce Commission and the Reserve Bank and the government 63 00:03:22,360 --> 00:03:26,000 Speaker 2: are looking for greater competition in the banking market and 64 00:03:26,040 --> 00:03:29,239 Speaker 2: they're looking again at some of these rules in terms 65 00:03:29,280 --> 00:03:32,520 Speaker 2: of how can we better and hard competition Players like 66 00:03:32,560 --> 00:03:35,520 Speaker 2: Dosh into the market so we can offer new services. 67 00:03:35,680 --> 00:03:39,280 Speaker 1: So ultimately, shape are you are you hoping to have 68 00:03:39,400 --> 00:03:42,000 Speaker 1: that threshold cleared, like for them to drop it down 69 00:03:42,040 --> 00:03:44,000 Speaker 1: from thirty mil in order for you to be able 70 00:03:44,000 --> 00:03:45,360 Speaker 1: to get in or are you going to scrape together 71 00:03:45,400 --> 00:03:45,839 Speaker 1: thirty mil. 72 00:03:47,080 --> 00:03:49,280 Speaker 2: Yeah, Well, we're confident that we can meet the requirements 73 00:03:49,360 --> 00:03:51,080 Speaker 2: that the bank were said and we were forward to 74 00:03:51,120 --> 00:03:53,960 Speaker 2: working with them on that. So yeah, Look, it's an 75 00:03:54,000 --> 00:03:57,600 Speaker 2: interesting it's an interesting topic about the capital, but ultimately 76 00:03:57,680 --> 00:04:00,480 Speaker 2: for us, it's more about how can we do better 77 00:04:00,720 --> 00:04:03,360 Speaker 2: consumers and bosfer them better value in pricing. 78 00:04:03,480 --> 00:04:05,160 Speaker 1: Yeah, good stuff, Best of lucky that Shane. Thanks for 79 00:04:05,160 --> 00:04:06,880 Speaker 1: talking us through at Shane marsh, the co founder and 80 00:04:06,920 --> 00:04:09,280 Speaker 1: the chief executive of Dosh. 81 00:04:09,440 --> 00:04:12,600 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 82 00:04:12,720 --> 00:04:15,720 Speaker 2: news talks it'd be from four pm weekdays, or follow 83 00:04:15,760 --> 00:04:17,560 Speaker 2: the podcast on iHeartRadio.