New Zealand's government is set to reform its consumer banking sector following a report from the Commerce Commission that identified a lack of competition among the four largest banks, all owned by Australian institutions. The report recommended 14 measures, including increasing capital for Kiwibank, the state-owned lender, and implementing a fully operational open banking system by June 2026 to enhance consumer choice. Finance Minister Nicola Willis has indicated that options for boosting Kiwibank's capital will be explored, potentially involving local investment funds and retirement savings. The report emphasizes the need for a stronger Kiwibank to act as a competitive disruptor in the market. The Commerce Commission also noted that open banking could improve competition in the long term, despite existing challenges posed by large banks and consumer inertia. These recommendations reflect a broader push for innovation and competition within New Zealand's banking landscape.