Financial Services Sector Now Seventh Largest By GDP, Injecting NZ$16.1 Billion Into The Economy, New Report Finds

The Financial Services Council (FSC) has released its State of the Sector Report, bringing together the latest available industry, regulatory and consumer data to provide a snapshot of New Zealand’s financial and insurance services sector.

The report shows the financial services sector[1] contributed NZ$16.1 billion in GDP (year ended June 2025), ranking it seventh among all industries, ahead of sectors including agriculture and wholesale trade.

FSC Chief Executive Officer Kirk Hope says the State of the Sector report - which analyses multiple data sources over a five-year period to map key trends - reinforces the sector’s critical role as a cornerstone of New Zealand’s economic and social wellbeing.

“This is the first time the Financial Services Council has compiled a sector status report to this depth, which draws on a range of credible data sources to quantify the impact of the sector against societal and economic factors,” say Hope.

“This report shows that financial services are an essential part of New Zealand’s economic infrastructure and a key driver of long-term investment, productivity and national prosperity. The sector underpins growth and supports households, businesses and policymakers to plan with confidence.”

A growing and increasingly productive sector

Over the past five years, financial sector GDP has increased by 9.5 per cent from NZ$14.7 billion to NZ$16.1 billion, reflecting steady expansion through a period of global economic volatility. Total funds under management have grown from NZ$244.6 billion in 2022 to NZ$341.0 billion in 2025, representing an average annual growth rate of around 11.5 per cent.

The report also highlights increasing sectoral capability - between 2020 and 2024, labour and capital inputs increased 22 per cent, reflecting workforce growth and sustained investment in technology, digital platforms, cybersecurity and regulatory capability.

Employment has expanded significantly, with 73,146 jobs filled as at September 2025 - up more than 16 per cent since May 2019. The number of businesses operating in the sector has grown to around 700, representing a 27 per cent increase over the past decade.

Enabling long-term savings, investment and resilience

The report highlights the sector’s broader impact through its role in helping New Zealanders save, invest and protect what matters most, including:

• 3.4 million KiwiSaver members, with NZ$140.7 billion in funds under management
• 4.13 million life insurance covers, with NZ$1.368 billion paid in claims in the year to September 2025
• 1.35 million health insurance covers, with NZ$2.545 billion paid in claims over the same period.

Yet New Zealand remains one of the most underinsured countries in the OECD, signalling a significant resilience gap for households and the wider economy, says Hope.

“The data gives us a clear evidence base for identifying where the opportunities lie - whether that’s growing KiwiSaver participation, deepening capital markets, or improving insurance coverage.”

“Working constructively with government, there is a significant opportunity to build a stronger, more resilient financial system that supports New Zealand’s long-term prosperity.”

Cath Robertson-Hodder, Consulting Partner at KPMG New Zealand, says clear, consolidated research is essential to shaping the sector’s next phase of growth.

“Financial services is not simply a support industry - it’s a major driver of New Zealand’s economy,” says RobertsonHodder. “This report helps put clear, comparable data around that contribution.”

The State of the Sector Report is sponsored by KPMG and coincides with the FSC Outlook 2026 annual breakfast event, where the Rt Hon Prime Minister Christopher Luxon will deliver a direct address to the sector and offer comments about the report’s findings.

[1] Financial Services Sector includes: Banks and lenders, investment companies; insurance providers offering life, health and general cover; superannuation funds for retirement savings and auxiliary businesses such as brokers, financial advisers and consulting services.

Notes:

- Desk research for the report was conducted in November 2025, drawing on official and published datasets, FSC member data and FSC consumer research.
- FSC consumer research was conducted via nationally representative online surveys (fieldwork in March 2023, March 2024 and February 2025).

About the Financial Services Council

As the voice of the sector, the Financial Services Council is a non-profit member organisation with a vision to grow the financial confidence and wellbeing of New Zealanders. FSC members commit to delivering strong consumer outcomes from a professional and sustainable financial services sector. Our 110+ members manage funds of more than $100bn and pay out claims of $3.2bn per year (life and health insurance). Members include the major insurers in life, health, disability and income insurance, fund managers, KiwiSaver and workplace savings schemes (including restricted schemes), professional service providers, and technology providers to the financial services sector.

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