Finsec calls on BNZ to take the pressure off housing market

House on the hillBNZ’s proposed new sales targets for Banking Advisors threaten to increase New Zealand’s overseas debt and destabilise the housing market, according to Finsec.

“The proposed targets force BNZ staff to increase the volume of home lending at the expense of the New Zealand economy and New Zealand customers who do not need more debt,” said Finsec Campaigns Director Andrew Campbell.

“BNZ’s proposed new sales targets mean a customer from New Lynn, Lower Hutt or Riccarton going to see their Banking Advisor will be facing someone who is under pressure to sell the equivalent of $11 million worth of house mortgages to meet their performance targets,” said Campbell.

Banking advisors in these branches and others need to get 9,030 points next year to reach their target. In the past 12 months they got up to 16 points for each $10,000 of variable housing loans they sold. Next year they will only get 8 points, which means it is likely a higher volume of sales will be required resulting in more pressure on staff and customers.

In the last financial year the average operating income earned per employee increased 17% to $353,000 per year.

“A customer who walks into a BNZ branch will be meeting staff who will be under pressure from their employer to encourage them into home lending and debt. The economic effect of such large growth in consumer debt can be increasingly unaffordable houses.”

“BNZ workers and customers both want the same thing – to focus on customer service not targets and debt.”

(thanks to nzphotopro1 for the photo)

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