What would Kiwibank do with $500 million?

A $500 million capital injection would boost Kiwibank’s balance sheet, giving it a clearer runway to grow for several years and ultimately compete with big Australian-owned banks, its chief executive says.

“Capital is the fuel that runs the engine of a bank,” Steve Jurkovich told Markets with Madison.

“Putting more fuel in the tank, what that allows us to do is be really consistent about our growth ambitions and goals and pathway, for the next three, four, five years.

“Consistency of capital is one of the huge advantages that the big four Aussie banks have.”

He defined the funding it has been forced to find by its owner, the Government, as “growth capital”.

“The worst thing you can do as a bank is put the brakes on.”

However, incumbent financial service providers had been “asleep at the wheel” regarding innovation, he said, and Kiwibank had to catch up to popular online offerings such as Wise and Revolut.

“We have to move fast in the future, otherwise the really lucrative parts of business … is really under pressure."

Watch Steve Jurkovich discuss Kiwibank’s future, including a potential listing to raise capital, in today’s episode of Markets with Madison above.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Malone (nee Reidy) is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.