Alex Sims, an associate professor in Auckland University's commercial law department, says the banks are in a technology arms race with newer players.
"In the past people had a strong relationship with their bank - that has broken down.
It is easy to get a loan."
Sims points to the rise of peer to peer lenders who can approve loans quickly online without ever having to see a person in the flesh.
"The new players are far quicker at processing loans. Banks are really having to scramble. It's a technology arms race"
Sims says the banks are conscious of it but they are really struggling.