Finance companies have experienced a dramatic surge in popularity among New Zealand savers following the introduction of the Reserve Bank's Depositor Compensation Scheme in July 2024. According to the Reserve Bank's latest biannual Financial Stability Report, finance companies have collected approximately 30% more in deposits since the beginning of 2025, significantly outpacing growth at traditional banks, credit unions and building societies.

The scheme automatically insures up to $100,000 of deposits per depositor, per deposit-taking institution, providing savers with unprecedented protection if their chosen financial institution fails. This insurance coverage has particularly benefited finance companies, which historically were viewed as riskier alternatives to major banks. The increased confidence in finance companies has translated directly into their lending capacity, with residential mortgage lending by these institutions also rising by over 30% since the scheme's launch, indicating a substantial shift in New Zealand's financial services landscape.