Claire Matthews: The government's plan for Kiwibank might not be enough - Early Edition with Ryan Bridge

The government is looking to inject Kiwibank with $500 million in capital to "disrupt the status quo" and take on the big Australian owned banks. 

Kiwibank's parent company Kiwi Group Capital along with Treasury have been instructed to talk to potential investors, which could include Kiwisaver funds. 

For now an initial public offering is off the table with the government has ruling out selling off it's shares in the bank.

Massey University Banking Expert Claire Matthews isn't sure it will help the current situation.

"The government is pushing this very much as its going to make a huge difference to competition and I'm struggling to see that it really will make that much of a difference"

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