The Commerce Commission has released the draft report for its Personal banking services market study, stating that the major banks in New Zealand do not currently face strong competition.
We welcome the focus this report attention draws on prosperity – which isn’t about who’s profitable or the returns of different players; it’s about taking a multistakeholder view and starting a conversation about what we need to do to promote the shared wellbeing of all New Zealanders.
Considering what we see in the global banking markets relative to what we see in Aotearoa New Zealand, we need to be more progressive, to move faster and to be more innovative. As a progressive country we are a long way behind.
It is important that the sector takes the time to do some really deep thinking about what is best for our financial markets, our capital markets, our economy and the wellbeing of consumers. This is the first time in a long time that we have taken a step back and undertaken a proactive sector-wide analysis of the New Zealand banking sector, and whether the outputs of the study are viewed as favourable by members of the sector or not, the ability to reflect and take stock should be welcomed by all.
Where to from here?
This study is the first step in a journey that we support and encourage. This journey must also work towards an integrated view of the different initiatives across our markets and their interconnectedness with economy.
Innovation forces us to think differently, to be strategic as well as tactical, to synthesise the needs of different stakeholders in our market and move forward in a way that is responsive and mostly positive in our view.
KPMG looks forward to supporting all stakeholders as this journey gets started, and we will continue to provide insights as the conversation evolves.
If you have any questions on how KPMG can help you navigate insights from the Commerce Commission market study please don’t hesitate to contact the team.
