The Commerce Commission says the banking sector needs more competition.
It has released an interim report on its market study into personal banking services such as home loans, deposits, credit cards and overdrafts.It says there is a two tier market in which the big four Australian-owned banks have the major share, and smaller operators offer no threat to that dominance.
The commission says the sector lacks disruptive forces to drive change and deliver benefits to consumers. It is recommending the government look at ways to beef up Kiwibank, speed moves to open banking to allow consumers to switch banks easily, and get more information to consumers to make better choices.
Sam Stubbs from non profit kiwisaver provider and fund manager Simplicity has been a vocal critic of the banking sector.
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