The business case for advisers to expand into KiwiSaver and insurance has never been stronger
Here’s a question every adviser should consider; when a mortgage settles, does the client relationship end, or does it begin?
For a growing number, the answer is increasingly the latter. Across the mortgage industry, advice businesses are moving beyond home loans to offer KiwiSaver advice, personal risk insurance, and broader financial planning - and not as a side hustle. This shift is changing how advice businesses are built, valued, and sold.
Warwick Slow, chief executive of The Kiwi Adviser Network (KAN), has had a front-row seat to this transition since KAN launched in 2021. He sees the momentum as structural rather than cyclical.
"There's a huge appetite from end consumers who've never had KiwiSaver advice or an insurance review," said Slow. "A report I read a couple of years ago said that 75% of New Zealanders haven't had KiwiSaver advice. This shows that there's a huge need and a massive opportunity for advisers to add value."
The opportunity in plain sight
If there is one product Slow would anchor a new advice business around today, it is KiwiSaver.
"It's a product most Kiwis have, so it's an easy and natural conversation to start," he said. "Compared to something like mortgages, which can have a long lead time, KiwiSaver allows you to engage clients early and build long-term relationships. Once people are in their first home, they're often contributing to their KiwiSaver balance right through to and beyond retirement."
From that foundation, Slow sees a clear path toward a full-service offering. Adding mortgages, insurance and investments allows advisers to support clients across their entire wealth journey rather than intervening at a single transaction point.
The commercial logic is also compelling for those thinking about the long-term value of their business. KAN's most popular recent podcast episode, featuring adviser Simon Rolland, focused specifically on how to build a sellable advice business, and KiwiSaver featured prominently in that conversation. Recurring, diversified revenue streams make a business more attractive to buyers, which is a consideration many owners are starting to think about earlier than they once did.
Building a business, not just a book
The change is a material difference to the mortgage advice norm of just a few years ago and a matter Slow thinks especially highlights the distinction between advisers who are building a book of clients and those who are building a business.
"If it's a book, that's completely fine," he said. "But if they want to build a business, they need to be thinking beyond mortgages, and KiwiSaver and insurance are the most natural places to start."
For many advisers, the timing feels right. Commission changes from some lenders, fluctuating interest rates, and variable settlement volumes have made the revenue case for diversification harder to ignore. At the same time, the regulatory environment has raised the bar on what good advice looks like, which Slow believes is pushing advice businesses toward a more rounded service offering.
"Advisers are looking for more stable and diversified revenue streams," he said. "Client expectations are also evolving. People increasingly expect their adviser to look at their full financial picture, not just one product. KiwiSaver, insurance and investments are all part of that conversation now."
What separates the businesses getting it right
Not every attempt at diversification succeeds, and Slow is candid about what separates the businesses doing it well from those that struggle.
"The businesses doing this well don't treat it as a bolt-on service, a 'would you like fries with that?' type of option," he said. "They're looking at the bigger picture, focusing on the customer's goals and how different financial products fit around that."
Those businesses are also reworking their customer onboarding processes and workflows to make multi-stream advice operationally manageable. It is here that technology is playing a meaningful role. Slow points to adviser performance data showing some practitioners doubling or tripling their productivity year on year, driven in part by better systems.
"For too long, too much time has been spent on paperwork, legacy systems and clunky workflows, meaning advice itself was only a small part of the day," he said. "Technology is enabling advisers to do more and service more clients without needing to significantly grow headcount."
The talent problem nobody talks about enough
If technology is making diversification more achievable, talent remains the most stubborn obstacle. When Slow is asked about the operational surprises advisers encounter when expanding into new advice streams, his answer is immediate.
"By a considerable margin, the biggest challenge is hiring the right people," he said. "New Zealand is in a real fight for talent, and financial services is already a limited pool."
For insurance in particular, there are structural hurdles beyond recruitment. Some providers require advisers to have around two years of experience before granting agency agreements, which means building competency in that space takes time even for motivated business owners.
The model Slow advocates for looks more like a well-run professional practice than a one-person band.
"I don't think advisers need to do everything themselves like a general practitioner," he said. "It's worth considering bringing in the right people or partners to help shape the future direction of the business."
The client who never got asked
Millions of New Zealanders are sitting on KiwiSaver accounts they have never properly reviewed or never received advice about. Many are underinsured or not insured at all. The advisers who have already built mortgage relationships with those clients are arguably the most natural people to have those conversations.
For Slow, that is where the real opportunity lies, not just in building a bigger business, but in delivering advice that clients actually need and have rarely been offered.
"There's a huge appetite from end consumers," he said. "This shows that there's a huge need and a massive opportunity for advisers to add value."
If the mortgage has settled, then the conversation should be just getting started.
This article was produced in partnership with The Kiwi Adviser Network (KAN)
