Opinion: More Competitive Banking For Southlanders

I regularly hear from local people concerned about their bank’s performance.

Now is the time to give the banking sector a bit of a shake-up and the Government is ready to deliver this.

In the South, elderly people have been particularly affected by changes in the banking sector.

The switch from cheques, to internet banking was stressful for many, while the closure of branches in rural areas, and Invercargill suburbs, has also hit people hard.

Difficulties securing a mortgage, interest rates and bank charges are other areas where Southlanders have expressed concern, with Federated Farmers also calling for action.

The Government has already made progress towards improving banking for Southlanders.

We’ve scrapped overly prescriptive regulations making it easier for Kiwis to get the loans they need and we’ve restored deductibility for mortgage interest.

The Official Cash Rate cut means local people will also pay less interest on their mortgages and credit cards.

The Commerce Commission’s, recently released, final report into bank competition laid bare the challenges we face – a highly profitable, yet uncompetitive market that’s not delivering the best for everyday Kiwis.

The report calls-out the market behaviour of New Zealand’s big four banks: they are highly profitable compared with international peers, they lack innovation and do not aggressively compete for customers.

As a result, bank clients are getting a raw deal – they face higher prices, fewer choices, and poorer service.

In response, the Government is taking decisive action on all fourteen of the Commission’s recommendations.

We’re strengthening Kiwibank to become a more disruptive player in the market, pushing forward with open banking to enhance innovation and choice, and ensuring that the Reserve Bank plays its part in fostering competition.

Progress has already been made through scrapping overly prescriptive loan regulations, making it easier for Kiwis to access credit.

The Finance and Expenditure committee is now taking submissions for its enquiry into banking competition, with a particular focus on rural banking, and I encourage Southlanders to have their say.

A more competitive banking sector that works harder for the people of the South is the goal.

Funded by Parliamentary Services

I regularly hear from local people concerned about their bank’s performance.

Now is the time to give the banking sector a bit of a shake-up and the Government is ready to deliver this.

In the South, elderly people have been particularly affected by changes in the banking sector.

The switch from cheques, to internet banking was stressful for many, while the closure of branches in rural areas, and Invercargill suburbs, has also hit people hard.

Difficulties securing a mortgage, interest rates and bank charges are other areas where Southlanders have expressed concern, with Federated Farmers also calling for action.

The Government has already made progress towards improving banking for Southlanders.

We’ve scrapped overly prescriptive regulations making it easier for Kiwis to get the loans they need and we’ve restored deductibility for mortgage interest.

The Official Cash Rate cut means local people will also pay less interest on their mortgages and credit cards.

The Commerce Commission’s, recently released, final report into bank competition laid bare the challenges we face – a highly profitable, yet uncompetitive market that’s not delivering the best for everyday Kiwis.

The report calls-out the market behaviour of New Zealand’s big four banks: they are highly profitable compared with international peers, they lack innovation and do not aggressively compete for customers.

As a result, bank clients are getting a raw deal – they face higher prices, fewer choices, and poorer service.

In response, the Government is taking decisive action on all fourteen of the Commission’s recommendations.

We’re strengthening Kiwibank to become a more disruptive player in the market, pushing forward with open banking to enhance innovation and choice, and ensuring that the Reserve Bank plays its part in fostering competition.

Progress has already been made through scrapping overly prescriptive loan regulations, making it easier for Kiwis to access credit.

The Finance and Expenditure committee is now taking submissions for its enquiry into banking competition, with a particular focus on rural banking, and I encourage Southlanders to have their say.

A more competitive banking sector that works harder for the people of the South is the goal.

This opinion piece is funded by Parliamentary Services and published by arrangement.