Labour will open up New Zealand’s banking sector to more competition, giving Kiwis more choice and making the big banks work harder for their business.
“This election is about the cost of living. Almost every Kiwi relies on a bank to get paid, pay the bills, buy a home or grow a business,” Labour Leader Chris Hipkins said.
“Four big banks dominate our banking sector. When there isn’t enough competition, customers have less choice and banks have less reason to offer them a better deal.
“Labour will break down the barriers that stop new competitors taking on the big banks.
“When banks compete harder, Kiwis get more choice and more power to shop around for a better deal,” Chris Hipkins said.
Labour will:
Give Kiwis more choice: Introduce a new e-money licence for businesses offering services like digital wallets and payments, with rules that reflect what they do and the risks involved.
Open up the banking system: Make sure smaller providers can access essential banking and payments infrastructure on fair terms.
Give Kiwis 24/7 access to their money: Require a secure, 24-hour, seven-day-a-week real-time payments system by 2030.
Back new competitors: Create a clearer pathway for innovative financial providers to grow into genuine banking competitors.
Make it easier to switch: Make government-verified identity easier to use across banks and fintechs, reducing the hassle of signing up or switching.
“The big four banks hold around 85 to 90 percent of registered bank assets. For most Kiwis, that means too few real choices about who they bank with and what services they use,” Labour Commerce spokesperson Arena Williams said.
“Technology has changed what’s possible. You shouldn’t have to rely on one of the big banks for every financial service you use, and new providers with a better offer should have a fair chance to win your business.
“Labour will make it easier for new providers to get started, grow and access the systems they need to compete. If the big banks won’t provide fair access, we’ll step in.
“We’ll modernise our payments system too. Kiwis should be able to move their own money when they need to, 24 hours a day, seven days a week, and if you find a better deal switching providers shouldn’t be a hassle.
“Kiwibank has an important role too. Labour created it and we’ll keep it 100 percent New Zealand-owned. But one challenger isn’t enough – Kiwis deserve more competition and more choice across banking.
“National promised to shake up banking but three years later, the big four are still calling the shots.
“Labour will open up the system, bring in new competition and give Kiwis more power to choose,” Arena Williams said.
