Meaningful difference seen as coming from Kiwibank’s capital raise

Kiwibank has been given the green light by the Government to raise $500 million from institutional investors with an IPO in 2028 being contemplated.

Cunningham says it was the only recommendation from the Commerce Commission’s study into bank competition that can make any meaningful difference.

“It will be impactful over time on competition. We've had the evidence of that already. About a year ago Kiwibank had a competitive interest rate slate at the time the main banks were marching out margins to a wider level. Kiwibank was swamped by borrowers and had to stop.”

Part of that was access to capital, part of that was access to staff because of the volume that was coming its way it needed more staff, Cunningham says.