Labour is putting the big banks in its sights as its election campaign zeroes in on the cost of living.

In an announcement in Auckland on Wednesday, Labour vowed to make it easier for new banking and payment companies to compete with ANZ, ASB, BNZ and Westpac.

Labour leader Chris Hipkins said more competition would give customers more choice and force banks to offer better prices and services.

"Almost every Kiwi relies on a bank to get paid, pay the bills, buy a home or grow a business," he said.

Under Labour's plan, smaller financial companies would face simpler rules if they wanted to offer services such as digital wallets, prepaid cards or payments.

The big banks would also have to give smaller competitors fair access to important payment systems and banking information.

Commerce spokesperson Arena Williams said Labour would ensure the country had a secure, "real-time payments system" running 24 hours a day, seven days a week in place by 2030.

She said Labour would also make it easier for New Zealanders to switch banks or sign up with a new provider, allowing customers to use government-verified ID across different companies.

"National promised to shake up banking, but three years later, the big four are still calling the shots," Williams said.

A Commerce Commission study in 2024 found the four big banks did not face strong competition, describing the sector as a highly profitable market with little aggressive competition on price. It recommended changes to make it easier for new players to enter and grow.

The National-led coalition later agreed to all 14 of the commission's recommendations, including moves to speed up open banking and give more weight to competition in banking regulation.

Some of the groundwork to open the sector up is already under way, including new open-banking rules which came into force late last year.