FAMNZ calls on advisers to be proactive amid low investor confidence

The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) has backed comments from ASB urging property owners to consult with advisors for long-term strategic advice amid a weakening economic outlook.

With GDP contracting 0.9 per cent in the June quarter and predictions of interest rate cuts, FAMNZ managing director Peter White AM says expert advice is more valuable than ever for homeowners and investors.

However he said advisers can’t wait for their customers to reach out, but should “get on the front foot through what is a turbulent economic period for many.

“Advisers should be proactive, and right now be contacting their customers to find out how they are travelling, and discuss their needs and ways to assist them.”

He pointed out that the market share for NZ advisers is currently around 50 per cent, but the aim of the industry must be to grow this share.

“A higher market share for mortgage advisers brings massive benefits to New Zealand as it increases competition while providing more options and greater expertise to consumers.”

“But this won’t happen with a passive approach.”

Mr White said consumers often don’t know what options are available to them, but advisers can provide these solutions, a message FAMNZ is actively promoting across the nation.

“As the only industry association exclusively for finance and mortgage advisers, FAMNZ is not only advocating for our industry with regulators, government and others, but we are raising the public profile of advisers through the media.”

However he said the onus is on advisers to back these efforts up by providing exceptional customer service.

“Remember that advisers act in the customer’s best interests according to their individual circumstances, something no lender is able to do.”

His message to mortgage advisers, particularly at a time of changing interest rates and when some are struggling, is to “be proactive, go the extra mile and show consumers a level of care that will build trust.

“Not only will you have a customer for life, but every customer has friends and family and these referrals build successful broking businesses.”