People aren't encouraged to switch banks as the offerings from the big four are so similar

Its draft report by the Commerce Commission's found there's a two-tier system diving smaller banks and ANZ, ASB, BNZ and Westpac .. with no strong competition.

It recommends improving capital for Kiwibank and smaller banks and pushing ahead with open banking.

Consumer NZ CEO Jon Duffy says people deserve markets where businesses compete hard .. and don't sit on large customer bases, large profits and offer lack-lustre service.