Search

Where there's Smoke there's fire


There has been lots of publicity around the behaviour of the larger Australian banks as a result of the Australian Securities and Investments Commission recent enquiry into bank behaviour.

The interesting thing is that despite all the major banks in New Zealand being owned by these same Australian banks, the banking authorities and the local banks themselves, all claim that "things are different here!"

Really?!........ read on.

There are a few things to note here:

1. Corporate culture. Many of the executives running the local banks are Australian themselves or Australian trained, so why would they see things differently from their parent banks?!

2. As frontline advisers we witness bank behaviours on a daily basis. Things are rarely as they would have you think from their advertising.

3. Like any publicly listed corporate, profit, share value and market position are the main drivers of company policy and behaviour, not client satisfaction as they would have you believe.

4. A good proportion of the adviser industry is made up of ex-bank employees. Why?! Because almost without exception they have left secure, well paid employment as a result of the relentless pressure to sell more products, if necessary at the expense of customer satisfaction and service.

The moral of the story! If you think you can absolutely trust your bank to provide you with the best, unbiased advice, then deal direct.

However, if you want professional, open advice on a range of offerings in the market by someone who relies on giving excellent service for their survival, then talk to an independent financial adviser. Currently, that's also quite likely to be free unless otherwise stated.

So why wouldn't you use a financial adviser?!

Call us on (03) 281 8605 or email us at jerome@thompsoncneill.co.nz


45 views