The Great Inertia: Why Kiwis Stick with Banks They Don't Like

Consumer NZ data reveals 97% of New Zealanders stayed with their primary bank in 2025 despite low satisfaction, highlighting a massive "intent-action gap" in the sector.

By: AXL Media

Published: Apr 7, 2026, 5:21 AM EDT

The Intent vs. Action Gap

According to Consumer NZ market research manager Scott Moore, there is a profound disconnect between what customers say and what they do. Heading into 2025, approximately 7% of New Zealanders indicated they were "very likely" to switch banks. However, by the end of the year, the actual churn rate for primary banks sat at just 3%. This "inertia" suggests that while the desire for better service or lower fees exists, the perceived effort of moving accounts acts as a significant barrier.

Perceived Barriers to Switching

For many New Zealanders, the hurdle isn't just paperwork—it’s perceived risk. Reader feedback and market analysis highlight several key reasons for the lack of movement:

Mortgage "Handcuffs": Customers with existing home loans often feel trapped, fearing that other banks may not offer the same terms or "touch" them due to age or changing financial circumstances.

The "Same Service" Perception: Many consumers believe that all major banks (ANZ, ASB, BNZ, and Westpac) offer identical service levels, making the effort of switching feel futile.