Banks' KiwiSaver dominance highlighted

The report by Treasury analysts was released this month.

It says four out of five new enrolees join the scheme via banks and the impact of financial advisers on KiwiSaver is limited.

“The data suggests that the role of independent financial advisers is minimal in new enrolments in KiwiSaver and therefore that competitive pressure from financial advisers using their comparative advantage at selecting the most optimal fund on the basis of risk, return and cost also appears to be minimal,” the report says.

It said KiwiSaver appeared to be competitive but there was a growing level of concentration in the market, driven by the dominance of banks and a number of mergers and takeovers.