Final report published
Market study into personal banking services
This page was updated2 weeks ago
On 20 June 2023, the Government asked us to carry out a 14-month long study into whether competition for personal banking services in New Zealand is working well and, if not, what can be done to improve it.
The study will consider any factors that may affect competition for the supply or acquisition of personal banking services.
Personal banking services, for the purposes of this study, are banking services ordinarily acquired for personal, domestic or household use. These services include current account, deposit, and overdraft account services, personal loans, and mortgage and credit card lending.
This study provides an opportunity to consider and evaluate whether competition in personal banking is promoting outcomes that benefit New Zealand consumers over the long term. Competition drives businesses to innovate and be more efficient, and to offer New Zealanders greater value and more choice. It is an effective competitive process that ensures prices and profits are not too high for too long.
As part of the study we will look at a range of matters, likely to include:
- the structure of the industry and the nature of competition in personal banking
- the conditions of market entry and expansion, particularly any that may affect disruptive firms
- consumer behaviours and preferences
- the extent to which consumers change their personal banking service provider(s), how easy or difficult it is to do that currently and the tools available to help consumers make those decisions
- any impediments to new or innovative banking products or services, business models or disruptive firms (including fintech providers)
- indicators of bank financial performance (including profitability) and what, if anything, those indicators might suggest about the levels of competition in personal banking.
The terms of reference for the study have been published in the Gazette. We are required to publish a final report by 20 August 2024. The process that we intend to follow over the course of this study, and indicative timeframes, are outlined in the Statement of Process paper, accessible under the Documents tab below.
Publication of reports
The draft report that we published in March 2024 sets out our preliminary findings on the factors affecting competition for personal banking services and draft recommendations to improve competition.
The draft report is the result of a detailed process of information gathering and engagement with a wide range of stakeholders, including providers of personal banking services, consumers and consumer groups, and Māori stakeholders. We thank all parties for the information they have provided and for their ongoing engagement with this study.
We held a media briefing when we released our draft report on Thursday, 21 March 2024 at 8.30am.
Next steps and how you can have your say
The preliminary findings and draft recommendations in our draft report are subject to consultation, further analysis and deliberation.
We invite comments on any aspect of the draft report, including any issues we have not covered that you consider relevant. We will consider feedback provided when preparing our final report.
Written submissions on the draft report are due by 4pm, Thursday 18 April 2024.
We also invite written submissions on the econometric analysis by Professor Dimitris Margaritis and Dr Maryam Hasannasab of the University of Auckland, published alongside our draft report. Written submissions on that analysis are due by 4pm, Thursday 2 May 2024.
We will be holding a consultation conference in central Auckland and online in the week beginning Monday 13 May 2024. Registration details and a registration link for those wanting to attend the conference will be sent out in due course.
Final submissions, including on matters raised at the conference and in submissions from others, are due by 4pm, Thursday 30 May 2024.
For more information on how to make a written submission and about the consultation conference see Attachment A of the draft report.
Our final report is required to be published by 20 August 2024. After that, the Government will decide how to respond to our findings and recommendations.
Stakeholder engagement
We expect this study will help to inform the public, the industry and Government about the nature of competition in personal banking and how the industry operates at present. As an independent Crown entity, we run a transparent process, we gather, analyse and assess information to explore in-depth the issues within the scope of study.
We will seek to engage directly with and gather information from a range of stakeholders and interested parties across business, consumer groups and industry bodies, the range of providers active in personal banking services and consumers.
As an Independent Crown Entity we support the Crown’s obligations as a Treaty partner under the Treaty of Waitangi, Te Tiriti o Waitangi. We are committed to engaging with Māori and supporting future-focused Māori-Crown relationships, through taking a good-faith, collaborative approach to engaging with Māori on our work.
Have your say on personal banking
We’re currently looking at how well competition in personal banking services is working and what could be done to improve it for the long-term benefit of Kiwi consumers.
You can share your views about personal banking by emailing us at marketstudies@comcom.govt.nz at any time throughout the study.
You can have your say on our draft report by completing the short feedback form below, which invites feedback on the preliminary findings and draft recommendations in our draft report.
By sharing your views you’ll help us build a better picture to ensure we hear from a wide range of New Zealanders. While all information shared with us through this form is anonymous, please be aware that the Commission is subject to the Official Information Act.
Have your sayConfidential information
We understand that some of the information stakeholders may want to share with us could be commercially sensitive and highly confidential. Anyone who has information relevant to the study can ask us to keep their identity and/or the information provided confidential and we can discuss any available protections with them.
If confidentiality is a concern, it should be raised when you first contact us so we can discuss your concerns as early as possible.
Our Market Studies Guidelines describe how we deal with information, including confidential and/or commercially sensitive information.
Read more
Market Studies Guidelines PDF (488 KB)Contact us
We welcome information from market participants and interested parties, including members of the public, in relation to the issues within the scope of study as we work towards a final report by August 2024.
If you have information that may assist this study, about the factors that may be affecting competition for the supply or acquisition of personal banking services, or views on the areas where we might best focus this study or the issues to explore, or would like to speak with us about the study, please email us at marketstudies@comcom.govt.nz.
Keep up-to-date with the study by subscribing to our mailing list below.
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This view shows the latest stage in the project. Click on the circled dates to see details. Navigate to other months, or scroll down, to see all stages.
Note: these dates are indicative only and are subject to change.