In a candid chat on When the Facts Change, Kiwibank chief executive Steve Jurkovich lays out his vision for the bank’s future – one where it can step up and truly challenge the big four Aussie-owned banks. But while he has high hopes, Jurkovich is quick to warn it won’t be easy.

The recent Commerce Commission report painted Kiwibank as the best bet for bringing a bit of heat to the Aotearoa banking sector. The report suggested Kiwibank could become a real contender if it’s given a consistent flow of capital to fuel its growth. Steve Jurkovich, chief executive of the state-owned bank, tends to agree. “We’ve got a plan that’s self-sustaining for the next five years,” he says, “but if you really wanted to ramp that up and really make a difference, then obviously consistent flow of capital would be great.”

With the right investment, Jurkovich believes Kiwibank could grow significantly, pulling in solid returns – even if they’re not breaking any records. Any potential move in that direction won’t come quickly as Kiwibank is currently focused on a tech and data transformation, something Jurkovich says is crucial if Kiwibank wants to keep up with customer needs and the ever-changing regulatory landscape.

It’s not just Kiwibank that could shake up the local banking sector. Jurkovich says a combination of open banking, consumer data rights and some form of digital identity has the potential to disrupt the way we move money. Although, he’s not holding his breath for a massive revolution just yet, pointing out that the impact of open banking globally has been “really low” so far.

Elsewhere in the episode Jurkovich shares his view on what’s in store for interest rates, what it really means when retailers start closing down and if the threat of a bold play into the banking sector by global tech giants like Apple and Google keeps him awake at night.

Click here for more episodes Bernard Hickey’s economics podcast When the Facts Change.