Digital advice clients nearly doubled in 2025
Over 164,000 New Zealanders received financial advice through digital channels in the latest reporting year, nearly double the previous period, as more providers expand how advice is delivered across the sector.
Data from the Financial Markets Authority’s Financial Advice Providers Industry Snapshot shows digital advice uptake rose 90% year-on-year, while the number of Financial Advice Providers (FAPs) offering digital advice increased by 21%.
The same dataset, covering 1 July 2024 to 30 June 2025, shows the broader sector also expanded. Licensed FAPs increased 10% to 1,553, while the number of financial advisers rose 8.5% to 9,197.
Despite that growth, the structure of the market has not shifted significantly. Most providers remain small, with 776 FAPs operating as single-adviser businesses and the majority engaging fewer than 20 advisers. Larger firms make up a smaller portion, with 62 FAPs employing 20 or more advisers, including three with more than 500 each.
Advice is still mainly delivered through individual advisers. The snapshot shows 95% of FAPs engage financial advisers directly, while a smaller group—43 Class 3 FAPs—provide advice through nominated representatives.
In terms of products, life insurance remains the most commonly advised category, with 824 FAPs offering advice in this area. Health insurance follows at 800 FAPs, while 518 provide advice on managed investment products, where KiwiSaver is the most frequently advised option. Consumer credit contracts were advised on by 393 FAPs, with residential mortgage lending the most common product in that category.
Funds under advice are concentrated among a smaller group of providers. The snapshot shows 162 FAPs, or 30%, reported more than $50 million in funds under advice. Another 127 fell within the $10 million to $50 million range, while 144 reported between $1 million and $10 million, marking a 22% increase from the previous year.
Complaint volumes declined during the period. FAPs recorded 40,646 complaints, down from 43,565 the year before. Most were resolved within three months, accounting for 98.9% of cases. Complaints escalated to dispute resolution schemes increased to 593, while the number upheld dropped from 85 to 49.
Outsourcing remains a common feature of operations. Seventy-one percent of FAPs outsourced at least one system or process, most often record-keeping, followed by compliance and cyber security.
The snapshot also recorded 19 information security events during the period, with phishing and credential harvesting the most common. Other incidents included system attacks, unauthorised access, and ransomware. Separately, 12 incidents affecting technology systems were reported.
Workforce data shows the average financial adviser age at 47, with more than half aged between 31 and 50. The number of advisers under 30 increased by 38% year-on-year.
Most providers have been in the market for several years, with 1,042 FAPs operating for more than five years. At the same time, new entrants increased, with 30 providers entering the market in 2025, up from 21 the previous year.
