Targeted videos for KiwiSavers

Giant KiwiSaver provider AMP has notched up a New Zealand first by using personalised videos to encourage ‘‘default’’ KiwiSavers to take an interest in how their money is invested.

Earlier this month, Rob Everett from the Financial Markets Authority revealed he’d sent the chief executives of all nine default KiwiSaver providers ‘‘please explain’’ letters for failing in their legal duty to educate savers.

KiwiSaver has grown to more than $40 billion, but a large proportion of the money remains in low-risk, low-return default funds, where KiwiSavers who don’t choose their own scheme are directed by Inland Revenue.

Starting this week, AMP will be emailing KiwiSavers in its default fund links to personalised videos encouraging them to consider higher-risk, higherreturn funds.

The videos will address each customer by name, tell them how much they have saved, and encourage them to click on a link to an online tool which helps them work out which kind of fund suits them best.

They can switch to that fund with the click of the mouse, or more likely a single touch of their mobile phone’s screen.

The backdrops of the videos are personalised so customers will see scenery from their local area. But because most people are likely to view the videos on the phone, possibly in public places, at no point does the voice-over mention how much they have saved.

AMP hopes its video approach will appeal to those who have not responded to phone and letter prompts.

‘‘In the next couple of days, there will be 100,000 of these heading out of the door,’’ AMP’s managing director Blair Vernon said.

Personalised videos are not the only call to action AMP is issuing this week.

It’s also rebooting its Essentials insurance range, which it marketed exclusively to its existing KiwiSaver scheme members last year, recognising that many KiwiSavers had no cover.