A survey by Consumer NZ shows the banking sector in New Zealand rates well above other service sectors. New Zealand Bankers’ Association chief executive Kirk Hope says banks have lifted their game over the last five years, with an eight percent increase in customer satisfaction from 84 percent to 92 percent.

Reserve Bank of New Zealand

A recent survey has revealed that most people rate their bank highly, and that the banking sector in New Zealand rates well above other service sectors.

“Banks put a huge effort into customer service and it’s great to see this reflected in the survey results,” says New Zealand Bankers’ Association chief executive Kirk Hope.

The survey of 13,000 people conducted by Consumer NZ in August found that banks outshone other industries with an overall satisfaction rating of 92 per cent. By comparison, similar surveys found satisfaction for electricity companies was 78 per cent (June 2012), with 72 per cent for internet service providers (December 2011) and 55 per cent for appliance retailers (May 2012).

“Banks have lifted their game. Over the last five years we’ve seen an eight per cent increase in customer satisfaction.” A similar survey in 2007 found an overall bank satisfaction rating of 84 per cent.

“The high level of satisfaction with our banks shows how competitive the sector is. By providing excellent service, banks work hard to attract and keep their customers. This is good news for New Zealand households and businesses,” says Hope.

Environment Canterbury

Government Administration Committee

The New Zealand Bankers’ Association welcomes the interim report of the Australian and New Zealand Productivity Commissions on closer economic relations and a single economic market, but notes that addressing the issue of double taxation of company income was an absolute ‘must do’.

“The interim report usefully addresses many of the remaining barriers to a single economic market. However, the most significant remaining issue – that of double taxation of company income – has not been adequately addressed and is a must do for the final report,” says New Zealand Bankers’ Association chief executive Kirk Hope.

“Considerable work has already been done on the issues relating to double taxation for businesses based in either Australia or New Zealand with substantial operations in the other country.”

“These issues have been the subject of discussion and debate for more than 20 years. The combined work of the Australian and New Zealand Productivity Commissions should be a catalyst for timely change as we move toward celebrating the 30th anniversary of CER.”

“Capital should be able to flow between New Zealand and Australia seamlessly without barriers. A free and open trans-Tasman capital market would provide a substantial net benefit to the overall trans-Tasman economy.”

Allowing mutual recognition would allow shareholders resident in one country to use credits for company tax paid in the other country to offset domestic taxes. This would prevent their dividends being taxed twice.

Treasury

As part of Money Week (2 – 8 September), the New Zealand Bankers’ Association is encouraging people to get financial advice on how best to manage their money.

“Getting advice about your finances and how best to meet your needs and aspirations is a good idea for everyone. It’s about making informed decisions to manage your debt, build your savings and make good investments.

“There’s a range of advice available, from free budgeting advice to professional investment advice, which can help you plan goals and get you where you want to go.

“A good start is to talk to your bank about whether your accounts are right for you. Banks are happy to talk about how their products and services best suit your individual circumstances,” says New Zealand Bankers’ Association chief executive Kirk Hope.

“It pays to be clear about the benefits and any associated risks of the financial products and services you’re using.”

The provision of financial advice is regulated by the Financial Advisers Act 2008. Under the law there are three types of advisers. Almost all retail banks are Qualifying Financial Entities (QFEs) and their advisers are qualified to talk to customers about basic products such as accounts and simple investment products. Registered Financial Advisers (RFAs) can also advise on those products. For advice on investments like KiwiSaver, managed funds and more complex products, you need to talk to an Authorised Financial Adviser (AFA).

All QFEs (the organisation, not the advisers who work for them), and all RFAs and AFAs need to be registered. To check if your adviser is registered, go to the Companies Office Financial Service Providers.

The week ahead is Money Week, and the banking industry is getting on board with a range of financial education activities. Mr Hope says banks are backing Money Week because they believe well-informed customers are better placed to make borrowing and investment decisions.

Money Week is a great time to spring clean your personal financial arrangements says the New Zealand Bankers’ Association. Money Week brings together a range of financial education activities from 2 to 8 September.

“Most people think about their personal finances when faced with big life events such as studying, starting work, buying a house or retiring. New Zealand’s first ever Money Week gives us all a chance to think about what we’re doing with our money and how we’re planning for the future.

“Knowing how best to manage your money to meet your needs and aspirations helps you, your family and your community. It’s also essential to our country’s economic growth,” says New Zealand Bankers’ Association chief executive Kirk Hope.

New Zealand banks are right behind improving our financial literacy. Well-informed customers are better placed to make borrowing and investment decisions.

“It’s all about people making informed choices to improve their financial well-being. It’s good for banks, and good for their customers.

“We encourage people to get advice on what’s best for them financially in terms of their personal circumstances,” says Hope.

Banks are involved in a variety of financial literacy initiatives, ranging from community education to online money management information and tools for their customers. They also provide information on specific banking products and services.

Get more information about financial literacy, including a free guide to unravelling financial jargon, and what banks do in this area.

A great independent online resource is the internationally acclaimed Sorted website: www.sorted.org.nz.

For information about specific Money Week activities in your area, go to http://moneyweek.org.nz/.