Mike's Minute: Banks - The perceived problem vs what's actually happening

With the news last week that a lot of people are changing banks as they re-finance their mortgages, we once again ask ourselves whether the problem we think we have is actually a problem.

We seem, at least in part in this country, to be caught up in the idea that if you are big and profitable there might be an issue.

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.

Martien Lubberink: ComCom diagnoses the problem with NZ’s banking industry

ComCom diagnoses the problem with NZ’s banking industry – but will its solutions offer a real fix?

The New Zealand Commerce Commission recently released a draft report on the state of personal banking services in New Zealand. Unsurprisingly, the market study found a marked lack of competition among the largest financial institutions in Aotearoa New Zealand.

But will the government bailout of Kiwibank in 2022 or the arrival of fintechs make any long-term difference? If the commission’s report is to be believed – probably not.