No images? Click here 4 August 2022 Media Release FMA survey sheds light on New Zealanders’ experiences with financial sector and concepts of fair treatmentMost New Zealanders are confident in their ability to make financial decisions, but only one-fifth say they are in a secure financial position. A new research project by the Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko - has revealed insights into the mindset and motivations of consumers as they manage their money and deal with financial services firms. The inaugural Consumer Experience with the Financial Sector Survey asked a nationally representative sample of New Zealanders about their financial situation, the financial products they own, and their experiences with providers. The research has shed light on what consumers consider to be ‘fair treatment’ from their provider, a core element of the FMA’s expanding regulatory mandate with banks and insurers. Respondents said the three most important factors were for providers to: clearly explain both the benefits and risks of products, be transparent and simplify the small print, and treat people as valued customers. Samantha Barrass, FMA Chief Executive said: “This survey will provide valuable insights for the FMA as we build capability in our understanding of the consumer mindset. We want to use data and evidence to shape the way we regulate and ensure fair consumer outcomes. This is especially important following the passing of the Conduct of Financial Institutions Bill (CoFI), which represents a significant expansion to our remit to cover the needs of all consumers of financial products and services.” The survey also found one-third of people (31%) feel nervous about speaking to financial services providers and a quarter (26%) find it difficult to identify financial products that are suitable. Turning to New Zealanders’ financial situations, just 21% feel secure in their financial position, while 27% are beginning to make progress, 37% are not making much progress and 15% feel insecure. Yet, encouragingly, most (65%) feel comfortable in their ability to make financial decisions. |