The Co-operative Bank joins KiwiSaver

The Co-operative Bank is to start distributing Fisher Funds' KiwiSaver products even though rival bank TSB is a shareholder in the fund manager.

Monday, April 14th 2014, 12:15PM 1 Comment

The Co-oeprative Bank chief executive Bruce McLachlan says KiwiSaver is now a core banking product that had to be added to its offering to customers.

After looking at the various offerings in the market Fisher Funds was selected for a number of reasons. One of the key areas it differentiated itself in the market was its abilities around distribution. Fisher Funds already has agreements with its shareholder TSB as well as the Association of Credit Unions. (Coincidentlly The Co-operative Bank recently accussed the association of trying to hi-jack its brand - story here).

"Fisher was the right partner for us," he said. "It was an easy decision to select them."

While it may saeem odd that the bank should do a deal like this with an organisation owned by a competitor McLachlan said not to read anything into it. "No, no, no. YOu can read absolutely nothing into it."

He said the bank has relationships with other competitors including BNZ, Kiwibank and Westpac.

McLachlan said it is a function of a small market place, and the bank had to be realistic about options.

He also said the bank had "reasonable protection" if TSB makes changes in its ownership of Fisher Funds.

The Co-operative Bank has 132,000 customers and it will be active seeking to engage with them and getting them to take up its KiwiSaver offering. McLachlan says many people are in inappropriate funds for their risk profile and need to shift.

Since The Co-operative Bank doesn't have any AFAs it will be working on a class-advice model and referring customers bank to Fisher Funds if they want personal advice.

The Co-operative Bank is paid a referral fee for all customers it signs up to Fisher Funds. McLachlan says the bank has "reasonably high expecations" on the number of its customers it can proactively get into its KiwiSaver offering.

« Case leaves bankruptcy questions unanswered

Make tax an election issue: FSC »

Special Offers

Comments from our readers

On 14 April 2014 at 9:06 pm The Explorer said:

Here is one of the major issues facing the industry today, we have a default provider that has two KiwiSaver schemes, one they bought the other they grew, now with numerous intermediary distributors in the market namely bank staff and a Bank Exec making the assumption that "many people are in inappropriate funds" so the way to fix that is to put them in front of a non AFA trainee bank teller and shift them.

Well ain't that just good news for all those AFAs that have to spend hours on end showing we have fully analysed the investment and ensured that it is fit for purpose and so on and so on and then they can march straight into a bank teller and change cos the executive reckons they could possibly in an inappropriate fund.......OMG

Then if they cant solve the problem, the clever executive will refer them to Fisher Funds, now they also say they have AFAs but have they ??? Or do they say they have because they have some from the TOWER sale, do they use these AFAs they have from TOWER or do they use a similar formula to the banks ??

Come On Mr FMA, let's get this product flogging, no advice, KiwiSaver distribution sorted make it a level playing field for the people that should be giving the advice, not just the ones you have allowed to give advice.

Sign In to add your comment