RBNZ Sees Three Paths for NZ Banking Industry by 2035

New Zealand's banking sector is bracing for disruption by 2035, according to a study by the Reserve Bank of New Zealand. The research maps three possible futures for the industry, ranging from incumbent banks successfully adapting to a more fragmented, platform-based ecosystem.

The study points to seven drivers that could bring global trends home to New Zealand over the next decade, including changing consumer expectations and growth in banking activity outside the regulatory perimeter.

The Reserve Bank stresses it does not favour any one outcome, noting the real world may ultimately contain elements of all three scenarios. The study's purpose is to sharpen the bank's judgement rather than predict outcomes, according to Assistant Governor Financial Stability Angus McGregor.