Competition study into personal banking services

Commerce Commission's final report

On 20 August 2024, the Commerce Commission published its final report setting out their findings and recommendations from its competition study into personal banking services in New Zealand.

The Commerce Commission:

• found that New Zealand’s 4 largest banks do not face strong competition when providing personal banking services, and
• made 14 recommendations with the aim of promoting competition for the long-term benefit of consumers in New Zealand.

Final personal banking services competition study report (external link)— Commerce Commission

Delivering more competitive banking for Kiwis(external link) — Beehive.govt.nz

Background

On 20 June 2023, the Government asked the Commerce Commission to begin a competition market study into any factors that may affect competition for the supply or acquisition of personal banking services and to make its final report for the study publicly available by 20 August 2024.

Personal banking services cover a number of essential services for individuals and households, including:

• savings and deposit services
• mortgages
• other lending.

This topic was chosen because of the importance of personal banking services for household saving and spending and for the New Zealand economy. There are indications that competition in the sector may not be working as well as it can for consumers.

Market study to investigate banking competition(external link) — Beehive.govt.nz

Gazette notice for the study(external link) — Gazette.govt.nz

Further details on the Commerce Commission’s study into personal banking services are available on the Commission’s website.

Competition studies(external link) — Comcom.govt.nz