Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Banks pushing unwanted credit cards and insurance

24 April 2019

Consumer NZ’s latest banking survey found one in five bank customers had been offered financial products they didn’t request and, in many cases, didn’t want.

Credit cards, increases in credit card limits, life insurance and personal loans were the most common products promoted to customers.

Consumer NZ head of research Jessica Wilson said the majority of people who got these offers didn’t think the product was a good option or suited their needs.

“Seven out of 10 consumers who were offered a new credit card or an increase in their card limit didn’t think it was a good choice for them,” she said.

The annual survey also found 16% had felt pressured by bank staff into buying a financial product they didn’t need.

Ms Wilson said pressure selling by banks was a major concern, given it could lead to consumers unnecessarily going into debt or being sold a poor-value product.

“Banks have attracted a lot of bad press in the past 12 months for their selling practices and we would have expected to see a change in behaviour. However, our survey results don’t give us any confidence that’s happening,” she said.

The survey also found just 47% of consumers thought banks could be trusted while 68% felt profits in the industry showed banks were charging too much.

Customer satisfaction remained unchanged.

“Overall, 60% were happy with the service they were getting from their bank, on par with our 2018 survey,” Ms Wilson said.

The Co-operative Bank and TSB Bank rated above average with scores of 87% and 83% respectively. Both were Consumer NZ’s “People’s Choice” winners in this year’s survey.

In comparison, ASB (55%) and ANZ (54%) rated below average for customer satisfaction as well as for their product advice, fees and value for money.

Satisfaction scores

• The Co-operative Bank: 87%
• TSB Bank: 83%
• Kiwibank: 66%
• BNZ: 63%
• Westpac: 60%
• ASB: 55%
• ANZ: 54%
About Consumer NZ’s survey

Consumer NZ’s survey was a nationally representative survey of 2118 New Zealanders, aged 18 and over, carried out in February 2019. Satisfaction ratings show the proportion of respondents who scored their bank 8, 9 or 10 on a scale from 0 (very dissatisfied) to 10 (very satisfied). Ratings are for banks that had 30 or more responses.


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>

Commerce Commission: Noel Leeming Group Warned For Making Delivery Representations Without Reasonable Grounds During COVID-19 Lockdown

Noel Leeming Group has been warned by the Commerce Commission for making delivery representations about two products which, in the Commission’s view, it did not have reasonable grounds for at the time the representations were made. The warning ... More>>