The Financial Markets Authority (FMA) released the results of its first Consumer Confidence Survey today. This survey combined the FMA’s KiwiSaver Statements and Investor Confidence surveys to better understand consumers’ perspectives on the financial markets. The survey’s results can be found here.

Who needs to read it? Why?

All financial services providers should note these results. The survey identified consumer motivations when selecting financial products. The survey also highlighted emerging trends, which will inform the FMA’s future regulatory approach.

What does it cover?

The survey had six key focus areas: financial products, KiwiSaver confidence and satisfaction, understanding of financial markets, confidence and fairness, financial advice and information, and scams and vulnerability. The key findings are summarised below:

• The use of Buy-now pay-later services has increased by 5% across all ages, with the greatest increase seen in the age group 18-34.
• 86% of New Zealanders have at least one insurance product. The average number of insurance products owned per New Zealander is 2.5.
• For investment products, the top factors a consumer considers are the product’s fund performance, fee structure, and reputation.
• KiwiSaver is the most widely owned investment product in New Zealand. Over half of KiwiSaver participants who haven’t made an active fund choice do not feel confident in their understanding of KiwiSaver.
• Māori are less likely to own banking and insurance products and have lower confidence in financial markets. 
• New Zealanders are most aware of the Reserve Bank of New Zealand, while the FMA’s awareness has dropped significantly to 27%.
• Confidence in New Zealand’s financial markets has decreased from 68% in 2023 to 57%.
• One in four survey respondents reported being approached with a scam, with cryptocurrencies being the number one form of investment scam reported. 

Our view

We support the FMA’s combined survey on consumers and financial markets. The results provide a comprehensive snapshot across the different focus areas and consider the correlation between consumer demographics and how they engage with financial markets. It also identifies key areas the FMA may consider in their future regulatory changes. 

What next?

From the survey results, the FMA also identified several areas of interest that they will make further publications on in early 2025. These include the experiences of minority groups with financial markets and the link between investment scams and confidence and consumer behaviour.

If you have any questions about what the FMA’s survey results may mean for your business, or are seeking advice on compliance with financial services regulations, please contact one of our experts. 

This article was co-authored by Ivan Zhang, a Summer Clerk in our Financial Services team.