LEAD
Mortgage advice enters the Golden Age Banks continue their retreat from the high street, and mortgage advisers stand to gain an advantage. With the new regulatory regime underway, advisers are more bullish than ever that they will grow their market share, writes Daniel Dunkley.
T
he Covid-19 pandemic has transformed industries across the world, and in New Zealand, the banking sector has been forced to accelerate some major changes over the past year. To save costs, the nation's biggest lenders have reduced their high street presence over the course of the Covid crisis. This has reduced the level of choice for borrowers seeking in-person advice as they address their home loan needs. The nation’s biggest lenders have blamed Covid-related pressures for their branch closures, continuing a trend
018
TMM 03 • 2021
that began several years ago. The rise of digital banking and online customer service propositions has led many banks to pare back their bricks and mortar sites. The biggest five banks in New Zealand closed 84 branches in the year to September 2020, according to KPMG’s 2020 banking report, with the number of retail sites falling from 934 to 850. Amid the high number of closures, prominent figures, including the New Zealand Bankers’ Association chief executive Roger Beaumont have questioned whether branches have a future, as customers are increasingly referred online and to call centres.
Between September 2020 and June 2021, the big five banks closed a further 77 branches. The closures have affected the level of customer service for the average Kiwi borrower, impacting their ability to talk face-to-face with a home loan expert at their bank of choice. Tightened lending conditions compound the issue for many borrowers. Customers unable to find a branch have been forced to jump through more hoops online and over the phone, with many unable to reach a satisfactory outcome for their lending needs as banks become more selective.
