The Commerce Commission published its final report on personal banking on Tuesday, highlighting a lack of competition in the sector, which is largely controlled by four Australian-owned banks generating substantial profits.
Antonia Watson, CEO of ANZ New Zealand, acknowledged during an interview that bank profits in New Zealand exceed those in many other countries. She explained that major banks must prioritize profitability to satisfy their international shareholders, emphasizing the necessity of foreign investment. Watson expressed a desire for New Zealand banks to be locally owned but conceded that there is insufficient capital available to purchase the major banks, estimating a need for around $50 billion.
Watson disputed the notion that competition among banks is minimal, pointing to recent decreases in home loan interest rates as evidence to the contrary. She affirmed that while competition exists, there is certainly room for enhancement.
Regarding the Commission’s suggestions, Watson characterized them as “solid” and expressed her support. However, the report pointed out that banks have been slow to adopt open banking initiatives. Watson attributed this delay to a lack of regulatory framework. She noted that countries like Australia have made more progress in this area due to the establishment of consumer data rights and regulatory bodies years ago.
Watson stated that ANZ is actively working on open banking initiatives and has been advocating for regulations that clarify liability when customer data is shared. She also mentioned the need for an accreditation agency to facilitate collaborations with financial technology companies.
ASB, BNZ, and Westpac declined to participate in interviews, while Kiwibank also opted out but indicated its readiness to compete against the larger banks.