Conduct and culture report will have 'positive implications' for Kiwis

The FMA and RBNZ’s upcoming report into the integrity of New Zealand’s financial system will have ‘positive implications’ for New Zealanders, according to FinTechNZ general manager James Brown.

The review, due to be released in November, will look into New Zealand’s financial institutions. According to Brown, the work already being undertaken by New Zealand’s biggest banks in response to the FMA/RBNZ enquiry is ‘encouraging.’

“In the past we have seen sales to dead people, inappropriate products and fees being charged for no reason.

“Lending in Australia and New Zealand has slowed. So, have banks been doing any stress testing around the next generation and how they view the purchase of a house as a long-term investment?”

Brown says that with companies like Sharesies and Hatch, the world of investment is now becoming more inclusive. As a result, the next generation may not be inclined to purchase a house as a default retirement plan, but instead consider other options – a trend banks need to be prepared to deal with, given that the bulk of their income comes from home lending.

“Typically, New Zealand follows what the UK and Australia do, and this could be the same for open banking,” he said. “Now is the time for our banks to make a decision about the future of banking, and how they want to support the decisions of their customers. This would need to include working with third party providers.

“Open banking is going to be a good thing, as it will force financial services providers to really focus on being customer-centric as opposed to it just being a slogan.”