The race is on to be the best digital bank, as technology takes on a fundamental role in the way banks are managed, and the overall future of banking, according to New Zealand Bankers’ Association Chief Executive, Kirk Hope.

In response to KPMG’s Financial Institutions Performance Survey for the quarter to June 2014, the New Zealand Bankers Association said that good management of banks is supporting New Zealand’s economic growth.

Hope said technology has played an important part in the strength of this management. “In a relatively short time digital banking channels have grown exponentially… Banks have proven themselves to be good at adapting in this fast changing environment. If they do not, they risk losing competiveness, customers and market share.”

He said New Zealand banks have the advantage of customer satisfaction and trust, and it is important that they are not taking this for granted given the increasingly competitive environment as new entrants and disruptors enter the market.

“At this stage, new entrants such as peer-to-peer lenders are focusing on unsecured lending, and still need to build trust. Banks will be watching them closely and will adapt to the changing market in the same way they embraced digital banking channels.”