1 in 4 Want to Improve Financial Literacy But Don’t Know Where to Go

Auckland, 16 April 2014 - A nationwide survey by Canstar Blue reveals that nearly a quarter of New Zealanders would like to improve their understanding of banking and finance, but don’t know where to go for information.

The survey, looking at customer satisfaction with the country’s banks, shows that financial literacy rates improve as people get older, says Derek Bonnar, Canstar New Zealand General Manager.

“More than a third of Gen Ys want to improve their understanding of banking and finance, compared to just 16% of Baby Boomers. Every life stage has its financial challenges, whether paying off a student loan, choosing and managing a credit card or mortgage or saving for retirement.”

Nearly two thirds of Kiwis stick to a budget, with the budgeting habit equally common across the generations, the regions and sexes.

“Budgeting is a great life skill to have,” says Bonnar, “but financial literacy doesn’t stop there. Of particular concern is the apparent number of young people who need help understanding what is a very important aspect of their lives.

“Since ramping up our research and ratings activity in the NZ market in 2011, we have observed a real need for Kiwis to improve their financial literacy. There are a myriad of financial products and services in the market to get to grips with and knowing where to find help is a great first step in tackling the confusion.

“Help is never far away for those wanting to improve their financial know-how. Canstar, (Canstar Blue’s parent company) provides free detailed analysis and comparisons of everyday financial products and services and easy to understand tips and advice, which are available at www.canstar.co.nz ,” says Bonnar.

Other resources like sorted.org.nz and budgeting services are also free and available to all.

The Co-Operative bank takes first place as the overall satisfaction winner in our 2014 ratings, with strong performance across the eight criteria, says Bonnar.

“The Co-operative Bank is owned by its customers and shares its profits with them. That approach is unique in the market and one that the bank’s customers appear to appreciate.”

The survey asked respondents who had one or more accounts with a financial institution to rate their provider across eight different criteria:

1. Branch service
2. Call centre service
3. Internet banking
4. The way problems are dealt with and fixed
5. Efficiency in dealing with enquiries
6. Mobile banking/smartphone applications
7. Fees/charges
8. Overall satisfaction

Banking - 2014

About the survey
Canstar Blue commissions Colmar Brunton using the SSI Panel to regularly survey 2,500 New Zealand consumers to measure their satisfaction across a range of products and services. The outcomes reported here are from the 2,284 people within the survey group who have one or more accounts or products with a financial institution.

Age Groups:
Gen Y: 18-29
Gen X: 30-44
Baby Boomers: 45+
*To view the full results of the Canstar Blue survey go to: www.canstarblue.co.nz

ENDS

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