Labour says it will intervene if the big banks don't give smaller competitors fair access to the banking system, as part of a plan to shake up the sector if elected.
"If the big banks won't provide fair access, we'll step in," Labour commerce spokesperson Arena Williams said.
She said the big four banks held around 85% to 90% of registered bank assets, leaving most Kiwis with "too few real choices".
Williams said Labour would keep Kiwibank 100% New Zealand-owned, but that more was needed.
"One challenger isn't enough – Kiwis deserve more competition and more choice across banking."
Under the plan, businesses offering digital wallets, prepaid cards or payment services would no longer have to become a full bank before they could compete.
Instead, they would be licensed under rules matched to what they actually do.
Labour says that would give payment companies a pathway to grow into digital banks. It points to how firms like Wise pushed traditional banks to make international money transfers cheaper.
Customers could also choose to use government-verified identity when signing up with a new provider, cutting the paperwork involved in switching.
Labour would also deliver secure, round-the-clock real-time payments by 2030.
"National promised to shake up banking but three years later, the big four are still calling the shots," Williams said.
The morning's headlines in 90 seconds, including the washup from the last night’s election debate, and an NBA star shows up at a French rugby training. (Source: 1News)
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