The Financial Markets Authority (FMA) in New Zealand reported that only 28% of New Zealanders sought financial advice in the last 12 months, with Māori and Pasifika communities significantly underrepresented. A major challenge for 31% of respondents was affordability, while 26% were unsure where to begin the process of seeking advice. Distrust in advisors affected 15% of individuals, and 14% cited both difficulty in finding a qualified advisor and information overload as barriers. The FMA noted that only 24% of respondents experienced no difficulty in obtaining financial advice, highlighting a widespread issue in accessibility.
The FMA's Chief Executive, Samantha Barrass, specifically highlighted that Māori face additional accessibility issues, including a lack of culturally aligned advice models and tools. The regulator's 'Matangirua' strategy aims to enable Māori to participate effectively in financial markets, recognizing that the Māori asset base surged from $69 billion in 2018 to $126 billion in 2023. Despite this growth, significant data and knowledge gaps exist regarding Māori consumers' and providers' experiences within the financial sector.
Research conducted by the FMA found that Māori consumers often experience a lack of contextual understanding and cultural competency from financial advisors, which exacerbates a general distrust in the financial sector. Participants in research wānanga expressed a desire for collective participation, especially in family-based savings, but found a lack of appropriate products. They also perceived KiwiSaver products as failing to incorporate Māori values and collective identities, such as whānau-centered investment approaches. Some Māori found online share trading platforms and cryptocurrencies more appealing due to a desire to avoid direct contact with providers where prejudicial treatment is often expected.
Innovative Māori providers, such as Toha Network, are emerging to address these barriers by embedding Te Ao Māori values and principles into financial systems. The FMA noted that these providers demonstrate how incorporating cultural values and Māori Data Sovereignty can help Māori landowners overcome regulatory challenges and diversify their revenue. The FMA emphasized that financial service providers and advisors need a strong understanding of the worldview, collective identities, and values that drive financial decision-making for Māori consumers to better serve this demographic.
