Competitiveness of banks under the spotlight

The Commerce Commission’s market study is to focus on personal banking services, including those “ordinarily acquired for personal, domestic or household use”.

Commerce and Consumer Affairs Minister Duncan Webb says the study should include the nature of competition, banks’ profitability, conditions for entry by potential competitors, and any impediments to new or innovative banking products or services being launched.

He has directed the commission to look into any barriers consumers faced comparing bank offers or switching banks, including the extent to which products or services may be tied or bundled.

Webb has asked the commission to publish a preliminary issues paper by the end of August this year before releasing its full findings by August 22, 2024.