Banks deposits and managed funds win over fin coys
More than half of New Zealanders are not confident their money would be safe with a finance company, according to the new RaboPlus Financial Confidence Index, which reveals that confidence in the sector has been badly battered.
Thursday, September 24th 2009, 5:18AM
by Sonia Speedy
The results show that 54% of those surveyed did not feel confident that their money would be safe, with 51% disagreeing with the statement that finance companies act fairly and with integrity.
Finance companies were the only sector in the survey to get a negative index score in terms of consumer confidence. Other deposit takers fared much better, with banks scoring +39 and credit unions and building societies scoring +23, against the finance companies -20. However, the data also show that non-customers of various institutions have less confidence in them than current customers.
Meanwhile, 84% of those surveyed would either definitely not or probably not invest with a finance company in the next six months. This compared to 75% for credit unions and building societies and 18% for banks.
Overall, the survey revealed that 60% of New Zealanders are less confident investing in the financial sector generally now than six months ago, while 46% said their investments were worth less now than in February.
RaboPlus general manager Mike Heath says trust and confidence in the financial sector has taken a battering.
"The survey results show people are more likely to keep their money with the bank in the short term, or invest in managed funds - a result that is likely to have been influenced by the uptake of KiwiSaver," he says.
While confidence in the financial sector generally is currently low, 30% of New Zealanders expect their financial circumstances to improve in the next six months.
| « Marac admits errors, and says not again | Moratoria slow-death for finance companies rather than quick: Diplock » |
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