Bank teller might not be the best source of advice

I would not rate the feature of seeing your balance online as compelling enough to change providers.

Q I bank with Westpac. I went into my local branch the other day and the teller asked me why I wasn't in KiwiSaver. I said that I was, but not with Westpac. The teller said: "Why don't you move to Westpac, then you can see your balance online when you do your internet banking?" Is this a good reason to change providers?

A It sounds like what the teller was giving you was product replacement advice. Any such advice should be given with care, skill and diligence.

The Financial Markets Authority (FMA), which supervises our financial markets, has noted more complaints about this type of activity. It has recently issued a draft guidance note around the sale and distribution of KiwiSaver which is under consultation.

And no, I would not rate the feature of seeing your balance online as compelling enough to change providers. Most, if not all, KiwiSaver providers offer online access to current balances and transaction information, so the bank is not offering you anything you probably don't already have.

Granted you may see your balance more often through internet banking, but is this necessarily a good thing? Some people may look at their balance and wish they could get their hands on that money, rather than having it out of sight, out of mind.

According to the FMA's draft guidelines around the sale of KiwiSaver, any decision to change provider or schemes "is more complex and is more likely to depend on the client's personal circumstances and, therefore, to need personalised advice."

In considering whether you should change your KiwiSaver scheme, an authorised financial adviser (AFA) would consider factors such as your needs, your risk profile, as well as the features, benefits and fees of your current and any recommended scheme. The ability to check balances online is unlikely to carry much weight as a compelling reason to change.

It is highly unlikely that the teller at your bank is an AFA.

More likely, they were earnestly trying to meet a sales objective all tellers have been given. This is not consistent with the client-first standard required of all AFAs.

I approached Westpac for their comments. A spokesman for the bank said: "Our banking consultants only provide information on products, features and benefits and refer all customers to an authorised financial adviser for more detailed discussions on how best to meet their needs. Being able to view a KiwiSaver balance online, along with other account balances, is certainly a Westpac feature and we find that members feel connected and engaged with their plan as it accumulates and they enjoy the transparency of being able to do so."

Banks are in an enviable position in having regular face-to-face contact with their customers. Westpac has built up the third largest KiwiSaver balance, despite not being a default provider such as ANZ/OnePath and ASB which hold the number one and number two spots.

Are bank staff at Westpac, and indeed, all our major banks just doing their job, or are they doing too much selling and not enough service? I welcome feedback on this topic.

Shelley Hanna is an authorised financial adviser. Her disclosure statement is available free by calling 8703838. This article is of a general nature and is not intended to provide personalised advice. For any KiwiSaver questions go to www.peak.net.nz or email shelley.hanna@peak.net.nz.