Kiwibank just over a month away from entering adviser market

I hope Kiwi bank is not accepting customer applications direct from dealer group CRMs based in Australia that are managed and owned by Australian real estate companies, would not be a great look for a kiwi owned bank, the majority of these group advisers won’t be disclosing to customers where and whom has and is holding their personal banking data which is a basic requirement under the current Privacy act and enforced by the new regulations.

Didn’t a large dealer group make it compulsory for all its advisers to send deals through their cloud-based CRM to BNZ saying this will speed up assessment times? When it’s actually made the turn around times worse as the CRM generated applications are of poorer quality, so really it was just the group trying to control and isolate their own advisers making it harder for them to make a decision of having their own FAP license or changing groups, or submitting applications using their own skill and experience. BNZ were party to this compulsory CRM submission via a cloud-based system owned and based in Australia, 90% of these customers will have no idea their private banking information is being held off shore because it’s just not being disclosed to them, you can check the majority of these advisers disclosure statements and it’s just not there, and BNZ are ok with this ?.

Well said Valkyrie6. Where our customers personal & financial information is stored & who can see & access this information is going to become a big issue for a great many advisers under licensing. A lot of mortgage advisers in Australia have now moved away from dealer group owned CRMs due to privacy concerns with some banks in Australia actually making this a condition of accreditation. I hope that the dealer group mentioned in this article negotiating with Kiwibank understands that the commission & clawback model offered by Kiwibank will need to be at least equal or superior to the lenders who already choose to deal with advisers. We don’t want a repeat of what happened when BNZ was allowed to re-entered the market & within a short space of time clawbacks at first BNZ and then Westpac dramatically increased. Based on past history if given the opportunity banks will reduce adviser commission or increase clawback periods. I really don’t want to see our industry shooting itself in the foot once again because the dealer group in question is only focussed on its own business & not the industry as a whole.