The New Zealand Banking Association, on behalf of its member banks and others, applied to the Commerce Commission, seeking authorization to collectively negotiate over cash-in-transit services with Evergreen International NZ, trading as Armourguard, according to a Monday statement by the regulator.

The cash-in-transit customers are seeking to negotiate and subsequently enter a collective agreement for a period of up to eleven years.

The banking association said that the proposed collective negotiation will result in improved sustainability of cash-in-transit services, reduced transaction costs, as well as enhanced financial inclusion and resilience, while not resulting in any public detriment.

The association also applied for interim authorization of the proposed arrangement, which would allow participants in the proposed arrangement to collectively negotiate with Armourguard to extend current terms.

The commission said that the statutory deadline for determining the authorization is March 25, 2026, and that it will publish a statement outlining the key issues that it considers important in deciding whether or not to grant authorization for the association's proposed arrangements. It invited parties who have an interest in the proposed arrangements to provide comments on the proposed arrangements by Oct. 6.

Cash-in-transit services include the transport, management, and processing of bulk cash for banks, public sector, financial institutions, and retail customers, as well as the replenishment of automated teller machines as well as bulk cash storage and management.