Sick of your bank but overwhelmed by how switching might work? A new website launched in June hopes to change the perception that changing banks is too hard.
In its market study into personal banking released last year, the Commerce Commission found half of New Zealanders had never switched banks, and thought switching had little benefit.
The Commission says customer inertia means there is a lack of competitive pressure on the big four banks, which enjoy 85 to 90 per cent of the market.
It is echoed by the smaller banks which complained to the Commission last year that the inertia made it hard for them to attract customers.
The Commission also criticised a switching service run by the banks own governance organisation Payments NZ since 2010 - saying it wasn't working and that no assessment on its effectiveness was done.
In response to that Payments NZ has revamped the service into a new website, 'Ready to Switch'.
The website explains how it works, including transferring things like automatic payments and direct debits to a new bank.
Steve Wiggins is chief executive of Payments NZ, and speaks to Kathryn about the new website. Commerce Commission chair John Small, also speaks about what benefits increased levels of switching could bring.
Photo: RNZ
