In this follow-up episode, Partner Jeremy Muir from MinterEllisonRuddWatts’ Financial Services team, reconnects with Shane Marsh, co-founder of Dosh, to discuss the recently released Commerce Commission market study report on personal banking services (Report). They explore its potential impacts on the banking industry and share insights into the future of digital banking in New Zealand.
[01:22] Jeremy and Shane discuss the key finding of the report; that New Zealand's personal banking services sector lacks competition. They delve into the underlying reasons for this issue and highlight the main takeaways from the Report, particularly from a digital banking perspective.
[03:58] They discuss the need for “maverick” providers in the personal banking industry and which industry providers might be best placed to be fill that void in New Zealand.
[07:10] Shane highlights Monzo, a digital banking trailblazer from the UK, as an international example of a “maverick” and market disruptor. He explains how their tech-driven, digital-first banking model has enabled them to successfully challenge traditional banks.
[08:30] Jeremy and Shane then explore the Reserve Bank's role in promoting competition in the personal banking services sector. Shane argues that capital thresholds for new entrants should reflect the applicant’s risk profile, suggesting that smaller, digital-only banks with lower risk should have reduced capital requirements to encourage innovation and competition.
[11:15] Jeremy and Shane acknowledge the government's quick response to the Report and consider what in practice this means for the market.
[13:52] They discuss the Select Committee inquiry that is now underway and how it provides an opportunity for industry participants to support meaningful change, noting the deadline for submissions of 25 September 2024
[15:51] Shane closes out the interview sharing his insights into the future of personal banking in New Zealand, noting the dawn of a new digital banking era is now underway.
Information in this episode is accurate as at the date of recording, 11 September 2024.
Please contact Jeremy Muir or our Financial Services team if you need legal advice and guidance on any of the topics discussed in the episode.
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Additional resources
New Zealand’s digital bank revolution with Dosh co-founder Shane Marsh
Commerce Commission: Personal banking services market study – Final report 20 August 2024
Select committee: Inquiry into banking competition – Submissions due 25 September 2024
