Summer questions: The Co-operative Bank boss Mark Wilkshire says 2026 will be tight, with margins under pressure but the housing market recovering
The Co-operative Bank chief executive Mark Wilkshire questions whether global equity growth rates are too frothy and there is risk of a correction. Photo / Supplied
It has been another big year in banking. Smaller banks have received support from the Reserve Bank in the form of eased capital requirements, while house prices are expected to recover. The Co-operative Bank chief executive Mark Wilkshire talks to the Herald about competing for customers and contending with squeezed margins as wholesale interest rates rise.
How would you describe 2025 for your business?
2025 has been a major reinvestment year for The Co-operative Bank. We have reduced fees to customers, launched digital wallets, simplified products and started our long-term investment in leading technology to build the future bank.
What will be your biggest business challenges in 2026?
We expect 2026 to be a tight year. Interest rates are at the low point in the cycle, which is good for borrowers, but also means margins will be under pressure. Our biggest challenge will be competing hard for customers and revenue as a New Zealand challenger bank.
What opportunities do you see in 2026?
The outlook is more positive generally. House prices should begin to recover in 2026. In our industry we see growth opportunity for a retail bank that focuses on fairness and transparency. We are looking to grow everyday banking and then support the personal lending and mortgage needs of our customers.
How are you using AI to change your business?
We are looking to change our business in two areas by using AI. Firstly, in system coding as we look to upgrade systems. AI can help us in technology testing plus migration to the new systems at a much higher speed than was possible before. Secondly, we are exploring opportunities in customer service, to help our people have access to the best information to help customers.
What will the key election issue be in 2026 and why?
The economy. It’s been a bit of a slog for a lot of people in the post-Covid era, with cost of living, rates and unemployment. People now want to see the uplift arrive, so economic performance will be key.
How do think the New Zealand economy will perform in 2026?
Better. A gradual improvement is widely forecast for the New Zealand economy, and we are seeing increased confidence. The watch-out is the rapid rise in global AI stocks. The inevitable question is whether global equity growth rates are too frothy or not, and the risk of a market correction.
What’s the worst mistake you have made in business and what did you learn from it?
People leadership is a skill that is learned and you make a few mistakes. At earlier stages in my career I was a bit too absorbed in getting ahead and not showing any chinks in the armour. Later I learned to be more relaxed and realised my humble upbringing was actually of value. I have become much better at listening to others and also sharing more of how I feel. That builds a lot more trust when people know you are for real and have personal conviction.
What would you rate as your greatest success?
My greatest success is in building a strong team and I’m excited by what this team is capable of. We are on our way building up The Co-operative Bank to fulfil its potential, for the benefit of our customers. I think it will take two to three more years to be able to fully demonstrate success to the market, but already it is the highest-rated bank by customers.
Where and how are you holidaying this summer?
In the Marlborough Sounds, with family and friends, in and around the water – it’s a unique and special part of NZ. It is a top day in the Sounds if the dolphins appear or if we catch a kingie. Al Brown’s seafood recipes are the go-to.
What would you recommend as a good book/podcast to read/listen to over summer?
Top on my summer reading list are two books. For light reading and escapism, Jack Reacher’s latest is out with Exit Strategy. I’m hoping that might appear under the tree, and I doubt it will stray from the other 29 versions of the bad guys getting tough justice. On a more of a business note, I’ve found How Big Things Get Done by Bent Flyvbjerg and Dan Gardner very useful in the past year. It covers the full range of insights from building the Empire State Building to IT projects.
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