1 00:00:00,160 --> 00:00:03,160 Speaker 1: Good afternoon. The Finance Minister has declared war on what 2 00:00:03,240 --> 00:00:06,320 Speaker 1: she calls the cozy pillow fights between the big four banks. 3 00:00:06,360 --> 00:00:09,320 Speaker 1: The Commus Commission released its banking study today. It made 4 00:00:09,400 --> 00:00:14,600 Speaker 1: fourteen recommendations to beef up competition, including capitalizing Kiwibank, introducing 5 00:00:14,640 --> 00:00:17,759 Speaker 1: open banking, cracking down on mortgage advisors, and the Finance Minister, 6 00:00:18,320 --> 00:00:19,280 Speaker 1: Nicola Willis is with us. 7 00:00:19,280 --> 00:00:21,439 Speaker 2: Now, Hey, Nikolin, good afternoon. 8 00:00:21,440 --> 00:00:23,159 Speaker 1: You have it on Kiwibank. How are you going to 9 00:00:23,200 --> 00:00:25,080 Speaker 1: capitalize it? Are you going to do a partial float 10 00:00:25,079 --> 00:00:26,119 Speaker 1: so anyone can buy in? 11 00:00:27,560 --> 00:00:30,560 Speaker 2: What I've done is I've asked Treasury to work with 12 00:00:30,640 --> 00:00:34,040 Speaker 2: Kiwi Group Capital that's the current company of Kiwibank, and 13 00:00:34,080 --> 00:00:36,320 Speaker 2: to give me advice before the end of the year 14 00:00:36,360 --> 00:00:39,600 Speaker 2: on options for raising new capital. So that could include 15 00:00:39,680 --> 00:00:43,600 Speaker 2: keep we saver funds, investment funds, investments from everyday New Zealanders. 16 00:00:43,920 --> 00:00:46,479 Speaker 2: They'll come up with options, Cabinet will consider those options 17 00:00:46,520 --> 00:00:47,559 Speaker 2: and we'll progress from there. 18 00:00:47,680 --> 00:00:49,959 Speaker 1: Are you committed to one hundred percent Keiwi ownership. 19 00:00:51,000 --> 00:00:54,840 Speaker 2: I think Kiwibank needs to remain New Zealand's bank and 20 00:00:54,960 --> 00:00:57,880 Speaker 2: exactly how that defines. As one of the questions that 21 00:00:58,320 --> 00:01:00,400 Speaker 2: need to be discussed during this process. 22 00:01:00,400 --> 00:01:02,960 Speaker 1: Why would mum and dad investors put money into key 23 00:01:02,960 --> 00:01:04,759 Speaker 1: We Bank if they can't sell it to just anyone 24 00:01:04,760 --> 00:01:05,880 Speaker 1: when they're ready to sell it. 25 00:01:07,440 --> 00:01:09,640 Speaker 2: Well, what I know is that a lot of the 26 00:01:09,720 --> 00:01:11,800 Speaker 2: key we Save are funds out there are looking for 27 00:01:12,040 --> 00:01:15,040 Speaker 2: valent based investments, and you're right, I'll want to invest 28 00:01:15,040 --> 00:01:17,280 Speaker 2: in it if it's profitable, if they think that it's 29 00:01:17,319 --> 00:01:20,240 Speaker 2: got the opportunity for growth and to deliver a return 30 00:01:20,280 --> 00:01:23,880 Speaker 2: to their investors. So one of the steps that the 31 00:01:24,520 --> 00:01:26,360 Speaker 2: Treasury will need to go through in the next couple 32 00:01:26,400 --> 00:01:29,120 Speaker 2: of months is to talk with those potential investors about 33 00:01:29,160 --> 00:01:32,120 Speaker 2: the turns on which they would want to invest and 34 00:01:32,160 --> 00:01:34,720 Speaker 2: you'll write, some of them may say, look, in order 35 00:01:34,720 --> 00:01:37,880 Speaker 2: to invest, I want the opportunity down the track of 36 00:01:38,120 --> 00:01:41,080 Speaker 2: seeing a listing occur. So those are all things that 37 00:01:41,120 --> 00:01:43,959 Speaker 2: will need to be taken into consideration and CANET will 38 00:01:43,959 --> 00:01:45,360 Speaker 2: deliberate on Okay. 39 00:01:45,080 --> 00:01:48,280 Speaker 1: On open banking, does this actually work? It's been hyped, 40 00:01:48,320 --> 00:01:50,440 Speaker 1: but the Aussies reckon it just cost them one point 41 00:01:50,440 --> 00:01:54,000 Speaker 1: five billion dollars and didn't really do anything for consumers. 42 00:01:54,400 --> 00:01:58,520 Speaker 2: Well, I'm much more optimistic about open banking because what 43 00:01:58,600 --> 00:02:02,760 Speaker 2: it means is you can have a financial service provider 44 00:02:02,800 --> 00:02:05,880 Speaker 2: who provides you one part of the banking offering. So 45 00:02:05,920 --> 00:02:08,120 Speaker 2: it just might be your current account, it might be 46 00:02:08,200 --> 00:02:11,520 Speaker 2: your foreign exchange, it might be your loan, and that 47 00:02:11,560 --> 00:02:13,720 Speaker 2: they can use your data in order to do that. 48 00:02:14,160 --> 00:02:16,160 Speaker 2: And the reason I feel optimistic about it is I 49 00:02:16,200 --> 00:02:19,120 Speaker 2: want New Zealanders to shop around a bit more because 50 00:02:19,160 --> 00:02:22,560 Speaker 2: one of the big conclusions of this report is that 51 00:02:22,600 --> 00:02:25,880 Speaker 2: most New Zealanders just don't switch bank, which allows the 52 00:02:25,919 --> 00:02:28,839 Speaker 2: banks to lean back and be pretty content that once 53 00:02:28,880 --> 00:02:31,760 Speaker 2: they've nabbed a customer, they're a customer for life. Well, 54 00:02:31,800 --> 00:02:34,359 Speaker 2: I like the idea of little minnows coming in and saying, hey, 55 00:02:34,440 --> 00:02:37,320 Speaker 2: I can do that for you cheaper, faster, better, And 56 00:02:37,360 --> 00:02:40,720 Speaker 2: that's what open banking allows for. And we've actually got 57 00:02:40,760 --> 00:02:43,280 Speaker 2: to make sure that the banks give that data away 58 00:02:43,360 --> 00:02:45,760 Speaker 2: so the innovators can come in and think up some 59 00:02:45,840 --> 00:02:47,200 Speaker 2: imaginative ways of doing things. 60 00:02:47,320 --> 00:02:49,040 Speaker 1: What's the problem with the mortgage advisors? 61 00:02:50,680 --> 00:02:52,960 Speaker 2: I look the comments Commission, I looked at this in 62 00:02:53,000 --> 00:02:57,400 Speaker 2: some detail. They basically say a lot of mortgage advisors 63 00:02:57,840 --> 00:03:01,320 Speaker 2: have agreements with the banks about up how much business 64 00:03:01,320 --> 00:03:05,240 Speaker 2: style flows through there. Sometimes you might not know it, 65 00:03:05,280 --> 00:03:07,600 Speaker 2: but your mortgage advisor doesn't even have a deal with 66 00:03:07,639 --> 00:03:10,280 Speaker 2: one of the banks, so you're only seeing offers from 67 00:03:10,280 --> 00:03:13,160 Speaker 2: two or three banks, not all of them. So I 68 00:03:13,160 --> 00:03:16,399 Speaker 2: think this is an area that the Cinential Markets Authority 69 00:03:16,440 --> 00:03:18,600 Speaker 2: looks over and we want to get the balanced right. 70 00:03:18,639 --> 00:03:20,840 Speaker 2: You don't want to tie up the mortgage advisors and 71 00:03:21,040 --> 00:03:23,359 Speaker 2: so much red tape that they can't do their job. 72 00:03:23,600 --> 00:03:26,560 Speaker 2: But equally, if you're going to a mortgage advisor, you 73 00:03:26,639 --> 00:03:28,720 Speaker 2: want to know that they are giving you the most 74 00:03:28,800 --> 00:03:31,960 Speaker 2: tuned up to deal possible. And again this is where 75 00:03:32,120 --> 00:03:35,040 Speaker 2: open deck tin comes in because if they can access 76 00:03:35,080 --> 00:03:37,360 Speaker 2: the dark ware and I only put in one application 77 00:03:37,480 --> 00:03:40,520 Speaker 2: and everyone's looking on the same page, makes it simpler 78 00:03:40,840 --> 00:03:41,600 Speaker 2: to care off. 79 00:03:41,440 --> 00:03:43,600 Speaker 1: Of listen, would you put your money where your mouth is? 80 00:03:43,640 --> 00:03:46,560 Speaker 1: And when the Westpac banking contract that you've got the 81 00:03:46,560 --> 00:03:48,600 Speaker 1: government has got comes up in twenty twenty seven and 82 00:03:48,640 --> 00:03:50,440 Speaker 1: if Kiwi Bank is ready, would you put your banking 83 00:03:50,440 --> 00:03:50,760 Speaker 1: with them? 84 00:03:52,160 --> 00:03:55,680 Speaker 2: Well, it's really important when the government does procurement, it 85 00:03:55,720 --> 00:03:59,560 Speaker 2: doesn't fame the one provider over another. So I'd expect 86 00:03:59,600 --> 00:04:03,200 Speaker 2: que to put their best foot forward and whether or 87 00:04:03,240 --> 00:04:05,480 Speaker 2: not they would win the tender would depend on who 88 00:04:05,640 --> 00:04:08,760 Speaker 2: was going to provide the best value for money contract 89 00:04:08,800 --> 00:04:10,000 Speaker 2: for the government contract. 90 00:04:10,040 --> 00:04:11,720 Speaker 1: All Right, Nicola, thank you for your time. Appreciate it. 91 00:04:11,720 --> 00:04:13,600 Speaker 1: This Nicola willis the Finance Minister. 92 00:04:13,960 --> 00:04:16,200 Speaker 2: For more from hither Duplasy Allen Drive. 93 00:04:16,360 --> 00:04:19,720 Speaker 1: Listen live to news talks they'd be from four pm weekdays, 94 00:04:19,880 --> 00:04:22,080 Speaker 1: or follow the podcast on iHeartRadio.