KiwiBank says its new moves are part of a long-term plan to expand its share of the business lending market. Photo: Kiwibank
Kiwibank is starting a new lending programme for start up operations, as it looks to expand its share of the business lending market.
It is trialling StartUp+ in conjunction with venture capital group Ministry of Awesome, offering individualised bank services and finance for newly formed enterprises.
Kiwibank chief executive Steve Jurkovich says mainstream banking does not fit small start ups well, with a 'one shape fits all' approach.
He said Kiwibank will offer a 'milestone' approach, where a start-up reaching certain targets will be eligible for certain levels of finance up to a maximum of $150,000.
"That's a different approach but does make more sense for an owner getting their business running, and we'll also offer discounted lending, transactional banking support, and a business banker to help you out.
"The key thing for us is to learn by doing, around how do we make it easier for more people to get going and get the capital they need."
Jurkovich said Kiwibank was not getting into venture capital investment, but saw this another opportunity longer term to expand its share of the business lending market.
He said all businesses would need to be accepted by the Ministry of Awesome and be involved in one of its programmes to be eligible, and Kiwibank would not be vetting the business proposition, nor the people running them.
Ministry of Awesome chair Marian Johnson said the Kiwibank programme was the kind of innovative approach needed from the finance sector.
"Start-ups face complex challenges that traditional funding models simply don't account for... this is what happens when major institutions act with agility and purpose. It's the kind of support that can transform our entrepreneurial ecosystem."
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