Credit bureau Centrix’s latest data indicated mortgage arrears rose for the seventh consecutive month, with just under 19,000 people behind on repayments, which equated to 1.3 percent of mortgages, while the Bankers Association reported nearly 45 percent of mortgage holders were ahead on their repayments at the end of 2022.
The New Zealand Banking Association submitted in 2019 that gambling providers and their customers could also circumvent that measure, for example by accepting and making deposits using other international payment services such as PayPal, WeChat and AliPay.
Decision makers from government and the financial sector are spending time with financial mentors to get practical insights into their daily work and the assistance they offer clients experiencing vulnerability and financial difficulties.
The initiative, called A Day in the Life, is part of a partnership between FinCap and the New Zealand Banking Association – Te Rangapū Pēke. The partnership, which is funded by NZBA’s member banks, provides $5 million over five years to fund initiatives that support financial mentoring for people in need.
To date 20 decision makers have experienced A Day in the Life, in places ranging from Auckland to Roxburgh.
Banking Ombudsman Nicola Sladden and ANZ’s Managing Director – Personal Banking Ben Kelleher are among those who have experienced A Day in the Life.
Nicola Sladden says: “I was struck by the need to deal with so many different agencies, which highlighted the benefit of the financial mentor providing holistic support.
“In one case a mum, who was the sole breadwinner, could no longer work because of an injury. The issues were dealt with in a compassionate, future-focused, and empowering way. I was really impressed by her optimism for a better future despite the challenging issues.”
Ben Kelleher says: “I saw first-hand the range of circumstances mentors face, much of it inter-generational and often with wider social, health, and family issues to consider.
“From a bank’s perspective, it’s a reminder of why lending responsibly is so important. Making sure people really understand the services we are providing, educating them about how to manage their repayments over the long-term, and the importance of saving.
“The main thing I took away from this was the important role financial mentoring services play in the community. It really is a life-changing experience for someone when you can help them get back on their feet and feeling financially secure.”
FinCap Chief Executive Ruth Smithers says: “We’re really pleased with how A Day in the Life has been able to connect decision makers with financial mentors and their clients in a very practical way.”
New Zealand Banking Chief Executive Chief Executive Roger Beaumont says: “This is a great initiative and I’m delighted it’s come out of our FinCap partnership. The kind of insights that have come through are incredibly valuable.”
In addition to the Day in a Life initiative, other projects funded through the partnership include:
- Banking Sector Collaborations: Community-led initiatives to support financial mentors help their clients connect with banking services in smaller communities.
- Iwi and Pasifika Development: linking financial mentoring services with Iwi and Pasifika people to help develop financial capability for people in financial hardship.
- Workforce Development: Establishing better resources and training for financial mentors to help them assist clients experiencing vulnerability to access banking and other services.
- Data and Insights: Collecting anonymised client information to develop insights into debt management and spending behaviour before and after budgeting intervention.
ENDS
“Due to a range of issues, primarily low seismic building ratings that would put staff and customers at risk in case of an earthquake, we have not been able to secure a suitable location.”
“Our banks are part of the communities they serve and responded quickly as the flooding and cyclone events unfolded, making $1.4 billion available in low-cost lending, and donating $6.5 million to disaster relief funds. They also provided loan repayment relief and access to term deposits.”
The new hub in Whangamatā will be located in a stand-alone location and have a multi-bank Smart ATM and a coin and note change service. A concierge will be available to assist customers access the services, which include an ATM, tablet for online banking, and phone. These services will be available in private areas to help ensure confidentiality.
Reserve Bank of New Zealand (more…)
New Zealand Banking Association chief executive Roger Beaumont said the latest tweaks to the CCCFA regulations still meant affordability assessments were needed for all types of lending and borrowers.
The New Zealand Banking Association shared that, in its opinion, requiring local Internet Service Providers (ISPs) to block certain providers of online gambling services would have a much bigger impact on tackling gambling-related harm.
“If credit cards are blocked, other payment methods – for example, debit cards, Paypal, WeChat, AliPay, through the purchase of ‘tokens’ on eBay or TradeMe, etc – can be used to gamble online,” the association said.