Case studies show mainstream products overlook Māori collective values
The Financial Markets Authority (FMA) has released two Kaupapa Māori research papers as its first step towards a deeper understanding of Māori consumers’ and providers’ experiences in Aotearoa New Zealand’s financial markets.
FMA CEO Samantha Barrass (pictured) said the work is central to the regulator’s te ao Māori strategy, Matangirua.
“Our te ao Māori strategy, Matangirua, is designed to help the FMA enable Māori to participate as Māori in financial markets, and in so doing, strengthen our ability to fulfil our regulatory obligations," Barrass said in a media release.
“The Māori asset base has grown at a significantly faster rate than the overall economy, from $69 billion in 2018 to $126 billion in 2023. Yet there are significant gaps in data and knowledge about Māori consumers’ and providers’ experiences across the sector.
She said FMA is committed to better understanding the perspectives of Māori participants in New Zealand’s financial services sector so it can ensure its vision of a financial system that works for more New Zealanders also holds true for Māori.
Barrass described the new research as the regulator’s first step into this space and said the focus is on listening, learning, understanding and then making changes.
First report: Māori consumer experiences of investment and savings
The first report, Matangirua research wānanga: a case study on Māori consumer experiences of investment and savings, presents kōrero from three wānanga held with Te Ora Hou Centres in Ōtautahi (Christchurch), Whanganui and Pōneke (Wellington) about Māori consumer experiences with investment and savings.
FMA Pou Ahurea, Jacob De Berry, who co-facilitated the wānanga, said participants showed a strong desire for collective approaches to money.
“Wānanga participants showed a common desire for collective participation, particularly around saving as a whānau and how this was impacted through a lack of appropriate products and services," De Berry said.
“A lack of te ao Māori values and the lack of opportunity for Māori to engage and act collectively, contribute to negative perceptions and feelings of exclusion."
He said participants felt KiwiSaver products and services failed to understand or incorporate Māori values and collective identities, particularly around collective decision-making and whānau-centred investment approaches.
De Berry added that some saw online share trading platforms and cryptocurrencies as offering greater opportunity to exercise their rangatiratanga and mana motuhake, and as a way to avoid direct contact with providers where, based on widespread experiences of prejudice or bias, they largely expected prejudicial treatment.
Second report: Innovative Māori providers and regulatory barriers
The second report, He Kākahu Whenua: a case study of Toha Network and East Coast Exchange, examines the experiences of innovative Māori providers in a pre-licensing context.
Hannah Chapman, co-author and FMA strategic adviser Māori, said the case study of Māori fintech provider Toha Network showed both opportunity and complexity.
Chapman said the research with Māori Fintech provider Toha Network demonstrated an innovative approach to embedding te ao Māori values in financial systems. It also highlighted the complex legal and legislative landscape that exists for Māori, particularly Māori landowners.
“There is a growing number of Māori providers who are addressing barriers to Māori participation in financial markets by developing business models that are conducive to a Māori worldview," she said.
“The case study shows how by embedding te āo Māori principles, fostering innovative partnerships, and embedding Māori Data Sovereignty into their business model, Toha aims to enable Māori landowners to overcome regulatory challenges, diversify land-based revenue, and assert self-determination, while advocating for broader market reforms that recognise collective benefits."
Chapman said both case studies have generated evidence and insights FMA can act on, and that the regulator intends to use the findings to inform its ongoing regulatory engagement and risk awareness so it can better address market failures and support fair, efficient and transparent markets.
FMA links Māori research to wider conduct and review agenda
The research also complements FMA’s recent thematic work on product and service reviews, which urges institutions to use consumer-focused reviews to identify harm and strengthen conduct, governance and communication.
FMA General Counsel Liam Mason said the reports underline why financial services providers and advisers need a strong understanding of te ao Māori and collective decision-making.
“He Kākahu Whenua highlights how Māori consumers and providers build and redistribute their resources to practice cultural values and exercise their responsibilities to their whānau and whenua, supporting their collective ability to thrive and be self-sustaining. This is echoed in all three Te Ora Hou wānanga,” Mason said.
“By utilising Kaupapa Māori research methods for this research it has revealed new insights and identified unmet needs which also have broader application, teaching us more overall about our role as an enabling regulator.”
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