Bank account ‘for life' suggested

Knowles  told the Opposition's banking inquiry that allowing people to keep the same bank account would make it much easier for them to switch their provider without having to change a raft of details that currently accompanies moving banks, much like the system where people can keep their mobile phone number but switch telecommunications provider.

Still, Knowles acknowledged the market was competitive as the banks tried to offer more attractive deals to lure customers away from their rivals. Kiwibank, as a challenger to the Australian banks that hold the majority of the market share, has to work harder to build its customer base, he said.

"There's space for us to offer better deals," with the big four focusing on maximising the return from their existing customers, he told the committee.

The New Zealand Banking Association told Good Returns the idea was a new one, but said competition among the banks in the mortgage and term deposit space was strong. It seemed unnecessary with most banks and financial institutions willing to accept the costs associated with changing provider, a spokesman said.