Kiwibank drops Mercer as KiwiSaver partner

Thursday 20th August 2009

Kiwibank has confirmed it is parting company with fund manager Mercer, as reported on Goodreturns.co.nz last week. Mercer has been the locally-owned bank's conduit for Kiwisaver clients since the government-backed KiwiSaver retirement savings scheme was launched in mid-2007

Kiwibank made the announcement today along with reporting a 42.5% lift in tax-paid profit based on strong lending and deposit growth, and reflecting the bank's desire to take KiwiSaver business in-house.

Mercer has around 70,000 KiwiSaver members and there is no change from current arrangements for them, said Mercer's business head in New Zealand, Martin Lewington. Kiwibank customers with Mercer KiwiSaver accounts will continue to deal with directly with Mercer.

"We understand and respect Kiwibank's decision to end the partnership with us, given their ambitions and I'm sure they will be worthy competitors."

Kiwibank's chief executive, Sam Knowles said Kiwibank now had its own wealth management division.

"We are considering being more actively involved in the superannuation and managed funds sector," he said.

Kiwibank risked confusing customers if it offered the same or similar services as Mercer and Mercer remained a partner.

Businesswire.co.nz

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