BNZ has teamed up with The Salvation Army to take on predatory lenders, who prey on people in financial difficulty. The Good Shop is a mobile store designed to undermine the predator’s business model by providing an ethical lending alternative. The first truck was on the road on February 2019.
The Good Shop truck provides access to high-quality goods and services at fair prices and on no-interest loans. It also gives people access to affordable groceries and practical financial support, all offered directly to the person’s home. To date the Good Shop service in South Auckland has provided 50 interest-free loans with a combined value of almost $50,000.
The service is part of the social services provided through The Salvation Army’s network of 71 Community Ministries centres operating throughout New Zealand. It is designed to be self-sustaining.
BNZ provided investment to help set it up with an interest-free credit line to facilitate the no-interest loans. BNZ takes all the credit risk. This partnership aims to build financial stability for some of New Zealand’s most vulnerable communities.