A banking expert believes new capital for Kiwibank will shift the dial but won't completely close the gap with its Australian competitors. 

Finance Minister Nicola Willis has announced the bank's parent company is being allowed to raise half a billion dollars from private investors to help it close in on the four major banks. 

Massey University banking expert Claire Matthews told Ryan Bridge Kiwibank is already making a difference, but can't see the announcement making a big enough splash.  

She says enabling it to grow will help, but the competition issue in the market is being overstated. 

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