1 00:00:00,000 --> 00:00:01,760 Speaker 1: It looks like the green loans are hit. You know, 2 00:00:01,800 --> 00:00:03,720 Speaker 1: these green loans where you borrow money for certain things 3 00:00:03,760 --> 00:00:06,000 Speaker 1: in nature. I think it's summer interest free. Some are 4 00:00:06,000 --> 00:00:08,720 Speaker 1: like one percent. Anyway we borrow. We borrowed a billion 5 00:00:08,800 --> 00:00:12,440 Speaker 1: dollars in these green loans, and basically it's for evs 6 00:00:12,600 --> 00:00:15,080 Speaker 1: and heating your house and solar panels and stuff like that. 7 00:00:15,200 --> 00:00:17,960 Speaker 1: Doctor Claire Matthew's Massy University Banking expert with its clear 8 00:00:18,000 --> 00:00:20,920 Speaker 1: good morning to you, mo der Mike is a billion 9 00:00:20,960 --> 00:00:23,520 Speaker 1: dollars A lot, oh. 10 00:00:23,560 --> 00:00:25,840 Speaker 2: I mean brilliant dollars are sitting a large amount of money. 11 00:00:25,880 --> 00:00:28,280 Speaker 2: And I think what's more important is because these are 12 00:00:28,320 --> 00:00:31,560 Speaker 2: smaller loans, it's actually a lot of loans. In terms 13 00:00:31,560 --> 00:00:33,320 Speaker 2: of the trial amount of lending banks are doing, it's 14 00:00:33,320 --> 00:00:36,000 Speaker 2: probably not a huge amount, But in terms of the 15 00:00:36,040 --> 00:00:38,440 Speaker 2: difference it's making, I suspect it's quite significant. 16 00:00:38,520 --> 00:00:40,479 Speaker 1: How much is it real? Because I mean, say, I 17 00:00:40,520 --> 00:00:42,720 Speaker 1: couldn't give the monkeys about the environment, but I can 18 00:00:42,760 --> 00:00:44,839 Speaker 1: get one percent loan on an EV. Why wouldn't I 19 00:00:44,840 --> 00:00:46,360 Speaker 1: buy an EV and do it that way as opposed 20 00:00:46,360 --> 00:00:47,800 Speaker 1: to a regular car payment. 21 00:00:49,040 --> 00:00:51,520 Speaker 2: Well, just something said, it's almost part of the part 22 00:00:51,520 --> 00:00:54,280 Speaker 2: of the reason for doing it. It's to help encourage 23 00:00:55,880 --> 00:00:59,880 Speaker 2: consumers to be more environmentally focused, maybe not because they 24 00:01:00,000 --> 00:01:02,760 Speaker 2: directly want to, but because it's incentives to do so. 25 00:01:03,080 --> 00:01:05,319 Speaker 1: Yeah, is there a bigger picture of place thee solar? 26 00:01:05,319 --> 00:01:08,360 Speaker 1: I've got questions around in terms of longevity. So I 27 00:01:08,360 --> 00:01:10,960 Speaker 1: borrow money for solar, I put the solar on the roof, 28 00:01:11,000 --> 00:01:13,240 Speaker 1: and of course it takes years to pay off, and 29 00:01:13,280 --> 00:01:15,479 Speaker 1: then suddenly I'm selling the house, I get nothing back 30 00:01:15,520 --> 00:01:17,080 Speaker 1: and I still owe this money. I mean, the issues 31 00:01:17,080 --> 00:01:17,720 Speaker 1: around that are not. 32 00:01:17,680 --> 00:01:21,399 Speaker 2: Really well potentially, but the point is that because you're 33 00:01:21,400 --> 00:01:24,000 Speaker 2: paying a lot less for the loan, the payback should 34 00:01:24,000 --> 00:01:28,520 Speaker 2: be much better. And there's a whole other issue around 35 00:01:28,560 --> 00:01:31,959 Speaker 2: the need for solar energy and other types of energy 36 00:01:32,040 --> 00:01:35,800 Speaker 2: to be more cost effective. So it's a slightly different issue. 37 00:01:36,360 --> 00:01:40,319 Speaker 2: But one would hope that as we become more environmentally conscious, 38 00:01:40,360 --> 00:01:42,520 Speaker 2: and there are a lot of New Zealanders that already are, 39 00:01:42,920 --> 00:01:44,800 Speaker 2: that the fact that you've got solar pedals on your 40 00:01:44,800 --> 00:01:49,160 Speaker 2: house will be a selling point, will it well, I 41 00:01:49,160 --> 00:01:49,800 Speaker 2: would hope so. 42 00:01:50,280 --> 00:01:54,080 Speaker 1: Okay, And presumably this is the same criteria that all 43 00:01:54,120 --> 00:01:57,200 Speaker 1: banks use for lending. In other words, can you afford 44 00:01:57,240 --> 00:01:58,920 Speaker 1: to pay it back even if it is one percent 45 00:01:59,000 --> 00:02:01,880 Speaker 1: or zero percent, I mean, still be doing the DD 46 00:02:02,040 --> 00:02:02,680 Speaker 1: as they say. 47 00:02:03,720 --> 00:02:07,920 Speaker 2: Absolutely. The fact that these are concessional interest rates does 48 00:02:07,960 --> 00:02:10,440 Speaker 2: not absolve the banks of the need to do the 49 00:02:10,520 --> 00:02:13,079 Speaker 2: normal affordability checks. So yes, they've got to make sure 50 00:02:13,120 --> 00:02:15,600 Speaker 2: that the irrespective of what amount you're paying, that you 51 00:02:15,600 --> 00:02:16,440 Speaker 2: can still afford it. 52 00:02:16,520 --> 00:02:18,560 Speaker 1: They can't be making money at one percent. They must 53 00:02:18,560 --> 00:02:20,880 Speaker 1: be losing money. If they're losing money, is this green washing? 54 00:02:23,040 --> 00:02:24,520 Speaker 2: Well, I don't know that it's green washing if they're 55 00:02:24,520 --> 00:02:27,760 Speaker 2: actually losing money green washing, No, But they're doing. 56 00:02:27,560 --> 00:02:30,440 Speaker 1: It for altruistic reasons to save the world. So in 57 00:02:30,480 --> 00:02:32,200 Speaker 1: saving the world, are they saving the world? And if 58 00:02:32,200 --> 00:02:35,840 Speaker 1: they're not saving the world, is that green washing? Well? 59 00:02:35,840 --> 00:02:37,760 Speaker 2: I think it is a contribution to help save the 60 00:02:37,760 --> 00:02:41,800 Speaker 2: world because it's getting people into things to help save 61 00:02:42,280 --> 00:02:44,760 Speaker 2: energy that may may not otherwise have been able to do, 62 00:02:45,960 --> 00:02:48,640 Speaker 2: and it is costing the banks, so they are doing 63 00:02:48,680 --> 00:02:52,440 Speaker 2: it partly it's about showing that they are contributing to 64 00:02:52,480 --> 00:02:54,440 Speaker 2: the community and adding value. 65 00:02:54,680 --> 00:02:56,760 Speaker 1: Okay, hey, do you know about neo banks? 66 00:02:58,840 --> 00:03:01,519 Speaker 2: A little bit depends on the Is it worth. 67 00:03:01,320 --> 00:03:04,680 Speaker 1: Discussing neo banks at links? Tech Edwards. You know Tech Edwards, 68 00:03:05,760 --> 00:03:09,560 Speaker 1: the monopoly guy two degrees. Oh okay, yep, right, so 69 00:03:09,600 --> 00:03:11,920 Speaker 1: he's big on these neobanks. He reckons neo banks are 70 00:03:11,960 --> 00:03:14,360 Speaker 1: the future to banking in this country and therefore it'll 71 00:03:14,360 --> 00:03:17,720 Speaker 1: balance it out in the whole competition argument that's going on. 72 00:03:18,240 --> 00:03:20,200 Speaker 1: Do I need to look into neobanks and our neo 73 00:03:20,240 --> 00:03:23,280 Speaker 1: banks potentially the answer to the competitive problem in this 74 00:03:23,320 --> 00:03:24,400 Speaker 1: country with banks? 75 00:03:25,160 --> 00:03:28,120 Speaker 2: Well, neo just means new, so all it really means 76 00:03:28,320 --> 00:03:30,280 Speaker 2: is that these are banks that are coming in that 77 00:03:30,320 --> 00:03:34,040 Speaker 2: are going to do things slightly differently. It's much like 78 00:03:34,080 --> 00:03:37,160 Speaker 2: the argument I think around open banking, that it's going 79 00:03:37,200 --> 00:03:39,200 Speaker 2: to make us do things in a different way and 80 00:03:39,240 --> 00:03:42,160 Speaker 2: the forebank's going to fix the competition problem. It's worth 81 00:03:42,240 --> 00:03:44,480 Speaker 2: worth having a look into because it all depends what 82 00:03:44,800 --> 00:03:47,840 Speaker 2: the neobank, how it specifically is going to operate, because 83 00:03:47,840 --> 00:03:50,080 Speaker 2: they're all going to be slightly different in terms of 84 00:03:50,120 --> 00:03:52,600 Speaker 2: what they're offering and how they go to operate. But 85 00:03:53,600 --> 00:03:56,160 Speaker 2: whether they're going to solve the problem, that's a different question. 86 00:03:56,280 --> 00:03:57,840 Speaker 1: Well, it's a pleasure. Clear you have a good weekend. 87 00:03:57,880 --> 00:04:00,840 Speaker 1: Doctor Claire Matthew's out of Massive University, going to London 88 00:04:01,640 --> 00:04:03,800 Speaker 1: to find out that it's not a thing. Am I 89 00:04:03,800 --> 00:04:05,960 Speaker 1: If you missed yesterday's story, text wants to fly me 90 00:04:06,000 --> 00:04:08,600 Speaker 1: and the research all be worth your investment though, couldn't it? 91 00:04:08,640 --> 00:04:11,120 Speaker 1: Good Boo Wilson. We'll see how we're feeling later in 92 00:04:11,120 --> 00:04:12,640 Speaker 1: the show. We'll see how the show and go. Yeah, 93 00:04:12,680 --> 00:04:14,880 Speaker 1: I mean I might be over at by nine o'clock. 94 00:04:15,440 --> 00:04:18,359 Speaker 1: For more from the Mic Asking Breakfast, listen live to 95 00:04:18,480 --> 00:04:21,520 Speaker 1: news talks. It'd be from six am weekdays, or follow 96 00:04:21,560 --> 00:04:23,159 Speaker 1: the podcast on iHeartRadio.