Big banks receptive to government push for greater competition
New Zealand’s largest banks have expressed openness to further government efforts aimed at boosting competition in the banking sector.
The response follows Finance Minister Nicola Willis’ statement that major banks must step up to deliver fairer outcomes for consumers and accelerate open banking initiatives.
The message came as part of the government’s reaction to the Commerce Commission’s final report on personal banking competition.
Alongside this, the government issued a revised financial policy remit and new expectations for the Reserve Bank to place a stronger focus on meaningful competition, RNZ reported.
BNZ welcomes competition-focused reviews
BNZ, a subsidiary of Australia’s NAB, stated that the current environment is already highly competitive but welcomed efforts to enhance it further.
“We have aspirations to accelerate growth across our business and we welcome any proposed reviews that aim to enhance competition for the benefit of all New Zealanders,” a BNZ spokesperson said.
The bank highlighted its leadership in open banking, a key focus of the Commerce Commission’s report, which aims to give customers more control over their financial data.
“As the market leader in open banking, BNZ has been providing open data services since 2018, with more than 250,000 customers already benefiting from the ability to share their data and make payments safely and securely. We support the focus on accelerating open banking as a way to enhance competition,” the BNZ spokesperson told RNZ.
ANZ commits to constructive engagement
ANZ also expressed support for the government’s initiatives and recommendations.
New Zealand’s largest bank said, “it welcomes the opportunity to work with the government and regulators to implement the recommendations of the Commerce Commission’s market study into personal banking services.”
ANZ emphasised its ongoing efforts.
“We’re already working on some of the initiatives and areas of focus identified in the report and we’ll continue to engage constructively with industry, regulators and the government on them,” it said.
Broader industry support for competition
The Banking Association, representing 18 member banks, also signaled its support for greater competition.
“Our 18 member banks operate in a competitive environment and welcome the market study recommendations to make banking even more accessible to New Zealanders,” Chief Executive Roger Beaumont (pictured above) told RNZ.
Beaumont noted ongoing industry efforts with the Reserve Bank, including initiatives like lending on whenua Māori and enhancing basic banking access.
Mixed responses from other banks
Westpac declined to comment, while ASB did not provide a response to the government’s announcement.
Next steps for competition in banking
The government’s focus on driving competition, alongside an accelerated rollout of open banking, marks a significant shift for New Zealand’s financial sector.
With leading banks expressing willingness to collaborate, the changes are expected to improve consumer outcomes and increase accessibility to financial services, RNZ reported.
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