Bank advice concerns questioned
Many advisers have raised concerns about bank staff pushing their own products with little advice.
Claire Matthews, of Massey University, said an element of that was being driven by concerns that banks were taking business from advisers.
She said bank branch staff were limited in what they could advise on but that was not necessarily a problem for consumers. “I’m not sure how many average consumers would expect bank staff members to tell them about anything other than their own products.”
Matthews said it could be worth considering a requirement that banks must include a statement saying that while they suggested a particular product, consumers should be aware there were others in the marketplace. “But consumers are unlikely to want to have to pay for advice. The whole point of having to go to an independent advice and get a broader range, they have to talk to someone else and that’s another step in the process which people may not want to take. Having the bank do it all for you in one step is one of the advantages, part of why they choose the bank.”
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