Justice reform leaders praise a new banking scheme in the country's 17 prisons to help counter the harm and 'heartbreak' of recidivism.
Johnny is in his fifties, but for the first time he recently acquired a basic utility most adults take for granted – a bank account.
Before he was jailed nine years ago, he only used cash.
He found banks intimidating, from walking on to the premises to navigating the system with all the “big words” and trying to explain his situation to bank staff.
Johnny, who will complete his sentence in Tongariro Prison later this year, is one of about 70 inmates who have made use of Westpac’s New Start programme.
Prisoners were guided through the process of getting proper identification documents, before opening an account with the bank.
Each application was considered on a case-by-case basis and checked it was in line with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
In December, the scheme was rolled out to 17 Corrections facilities after a successful pilot.
“Regardless of what crime they committed or how abhorrent it is, they need to function in the community. You try to set them up, so they’re less likely to offend.” – Darius Fagan, Corrections
Justice reform advocate and JustSpeak acting director Jordan Anderson said holding a bank account was an important factor in the successful reintegration of prisoners into the community.
While research into the relationship between prisoners' wellbeing after release and bank accounts in New Zealand was scant, Anderson said there was copious anecdotal evidence linking the two, and a clear connection between financial exclusion, social exclusion, poverty, and crime.
“It’s very difficult to pay rent, a phone bill, tax, and get a legitimate job without a bank account,” she said.
“It’s better for us as a society for prisoners to have a bank account so they are able to participate in a prosocial way and reintegrate back into the community.”
The chief executive of the Howard League, Mike Williams, welcomed the initiative. The penal reform group had been fighting for a programme to get prisoners' bank accounts for a decade.
Williams said New Zealand’s prison population was pushed up because of high recidivism rates, with the latest Corrections data showing nearly 40 percent of offenders were back in jail two years after release.
Opening a bank account and obtaining valid ID was part of the solution to reduce reoffending, as people released from custody were better set up to get a job or benefit, and more likely to stay out of prison.
He was not concerned about "white-collar criminals" who may have their attempts to open an account declined under anti-money-laundering laws.
“They tend to be Pākehā and a tiny minority. That would be the least of my worries," Williams said.
However, handing each prisoner a shiny new debit card as they walked out the door to freedom was not enough.
They needed to know how to use the bank account and spend their money wisely, he said.
Department of Corrections general manager for case management and probation Darius Fagan agreed.
“A lot changes in the way banks work if you’re in custody for five or 10 years,” he said. "If you’re in prison for 20 years, that’s even more difficult and people might not understand the nuances."
Fagan said each application was considered on a case-by-case basis, with the aim of providing each inmate the best chance at reestablishing themselves on release.
“Regardless of what crime they committed or how abhorrent it is, they need to function in the community. You try to set them up, so they’re less likely to offend.”
Some may question whether ex-prisoners are desirable customers to have on a bank's books. But Westpac’s head of consumer operations, Jason Lock, said the bank felt a duty to help people who were financially excluded, while holding the same expectations for all of its customers.
“Fundamentally, we do think banking should be available for as many people as possible, and we think we have a role in helping them have access to the system,” Lock said.
He said some of the inmate’s situations were “heartbreaking”, such as prisoners missing out on years of dividend payments from Māori land trusts as they did not have a bank account to deposit the money into.
Others hit a brick wall when trying to get proper ID to open accounts, as they were whāngai and did not know their legal name in the mix of their various given names.
The bank was already eyeing up other groups, such as the homeless, disadvantaged children, or refugees, and thinking about what help could be offered to them.
For Johnny, staying out of prison and in employment is his goal. Armed with his new bank account, he is hoping to land a job truck driving or use his forklift licence.
“I don’t know what to expect when I get out, but I hope I will be able to move on.”
