Professor Aaron Gilbert: Want NZ banking to be more competitive? Then make it easier to switch banks

The Commerce Commission’s banking market study has concluded more competition is required to reduce the profits of the big four banks. But the report suggests increasing competition may be ineffective unless customers are easily able and willing to switch between banks.

In 2023, the four Australian banks operating in New Zealand made approximately NZ$7.1 billion in profit, representing $1,400 per person. Despite many customers struggling due to increasing mortgage costs, the banks’ profits rose.