The Finance Minister has received early advice on how to better capitalise Kiwibank so it might compete better with the large Australian-owned banks.

The advice is in response to the Commerce Commission market study on personal banking.

Minister Nicola Willis says she hopes to bring more competition to the banking sector to improve things for Kiwi users.

"If you look over to Australia, they had a similar cosy oligopoly situation happening - Macquarie Bank played quite a disruptive role in that market, and the result was a better deal for everyday bank users."

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