There's a belief it's going to be a long journey to get Kiwibank into the ring with the big leagues.
Finance Minister Nicola Willis has announced the bank's parent company is being allowed to raise $500 million from investors to help it compete with the four major banks.
Simplicity founder Sam Stubbs says Kiwibank will need more capital over time.
He told Mike Hosking if the country has five banks making profits, at least one will re-invest in KiwiSaver.
Stubbs says it'll bring pricing pressures into the market, which there's very little of right now.
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