In April 2001, deputy prime minister at the time, Jim Anderton proudly set out the financial policy that would define his legacy.
Anderton laid out plans for a "Kiwi bank" that would give New Zealanders a more visible banking presence, with enough local branches for customers and "better service" than the "large overseas" lenders.
During his speech, Anderton said borrowers were fed up with increasing fees, branch closures, and staff "being laid off in their thousands".
The new state-owned bank, Anderton promised, signalled a "new direction". Kiwibank was officially up and running a year later.
But has it achieved what it set out to do?
Anderton's policy cemented a domestic bank at the heart of New Zealand's banking industry, backed and controlled by the Government.
Today, Kiwibank is still only the fifth-largest bank in the country, trailing behind the Australian-owned big four, under the ownership of state shareholders New Zealand Post, New Zealand Super Fund, and ACC.
Kiwibank was set up to deliver a social good and act as a viable domestic alternative to the Australian-owned giants, ANZ, ASB, BNZ, and Westpac. But critics argue the national lender has failed to dent the dominance of the big four and shake-up the banking system as first intended.
The Australian lenders still have 86.4 per cent of total assets in the New Zealand banking sector, with Kiwibank holding a 4.1 per cent share, according to the Banking Ombudsman Scheme's latest annual report.
It hasn't done anything to stop the Australians' run of big profits, either.
The big four have posted record annual profits in recent years. New Zealand banks raked in $5.77 billion in profit after tax last year, with the four main banks accounting for most of that increase, according to KPMG.
Kiwibank must contend with the commercial reality of running a profitable bank and trying to maintain its status as a national champion.
Kiwibank's recent results underwhelmed. The bank posted a profit after tax of $108 million in the year to June 30, a 6 per cent drop on the year before. The lender has also come under fire over the past year for scaling down its branch network as it separates retail operations from NZ Post, which is shutting Post Shops.
The branch closures have sparked anger in provincial communities and led to questions about whether the bank is abandoning its vision as a "convenient", visible domestic bank.
Kiwibank says changing consumer habits and smartphone banking mean fewer branches are needed.
Back in 2001, Anderton envisioned Kiwibank would deliver "better service at a lower cost" than its rivals. As Kiwibank struggles to placate anger about branch closures, consumer bodies say it at least delivers solid scores on customer service.
According to Consumer New Zealand, Kiwibank has a customer satisfaction rating of 66 per cent, higher than the big four, but lower than smaller domestic rivals The Co-operative Bank and TSB.
However, the Banking Ombudsman Scheme received 474 complaints about Kiwibank in the last year, more than larger banks ASB and BNZ. In recent years, the bank has also drawn criticism for introducing a $5 charge for people who call its customer service line more than five times a month.
Steve Jurkovich, chief executive of Kiwibank, says the lender is always mindful of its founding principles.
He points to the bank's growing mortgage book as evidence of its support for the economy.
"The essence of the founding vision, to create a credible alternative to much larger Australian competitors, is as real today as ever," Jurkovich says. "The reason we exist, to help Kiwis to be better off, is absolutely as relevant as it always was."
He acknowledges the frustration about branch closures and says the bank is adjusting to changes at NZ Post, as well as changing consumer habits and the rise of technology.
"The world has moved on from 17 years ago. We have to adjust and adapt to be relevant and credible and do the right thing by Kiwis. Being owned by all New Zealanders, people have deeply-held views of what Kiwibank should be. They think about us being co-located in Post Shops, but many now see it as an icon on their phone," Jurkovich says.
Despite the criticism over branch closures, Jurkovich believes the Australian Royal Commission into financial services, which unearthed endemic misconduct across Australia's biggest banking groups, presents an opportunity to push the Australian banks harder and encourage customers to switch.
"The Royal Commission will have a lot of customers asking 'I wonder if my bank here is doing that?' We have a great opportunity in front of us."
While Kiwibank remains optimistic about taking a bigger slice of the market, it lags behind rivals in key areas like small business banking.
The Reserve Bank's new capital guidelines for lenders could hinder its growth. Kiwibank has warned the new rules, which will force banks to hold more capital aside, could be more favourable to the market leaders.
Market analysts say Kiwibank has made an impact on the New Zealand banking landscape, but say the pace of change will continue to be gradual. They doubt whether the bank has the firepower to materially challenge the big four, and some question whether the country needs a state-owned lender in 2019.
Economist Michael Reddell says Kiwibank has been "relatively effective" in offering a credible alternative to the big four.
"The mandate was a nationalistic one of having a player on the stage, and they have fulfilled that. It has probably done better than we expected and seems to have established itself in a viable position. At the same time, does it look like it is going to supplant the big four? The answer is no."
Reddell questions the bank's "public purpose" in its current form, and believes it could be better served outside of government control: "It's not as if the product offered by Kiwibank is materially different to that of other New Zealand banks."
Reddell believes the Government should "take value while they can" by exploring a privatisation.
"I'd be happy if it was sold off as a public float," Reddell added. "That might scratch the political itch of not allowing it to be taken out by the Australian banks."
Claire Matthews of Massey University doesn't believe Kiwibank has made a big difference to the New Zealand banking landscape.
"I don't think they have significantly changed the market. I couldn't point to anything and say Kiwibank has brought innovation that wouldn't have happened otherwise," she adds.
"I never believed there was a place for a state-owned bank and I'm still not convinced. If the Government really wanted to support local entities, it would have been better to support existing entities. Kiwibank provides something useful in the market, but I don't see the fact that it is state-owned as being vital to that."
More than 18 years on from Anderton's speech, Kiwibank faces a difficult balancing act of sticking to its original mandate, standing out from rivals, and matching better-funded rivals.
John Kensington, a partner at KPMG, says Kiwibank's market share growth will be a process of "attrition".
"The big four banks are so good at raising huge amounts of money and then dispersing that out to customers as loans. They are so much better than anybody else at that."
Kensington says Kiwibank might have to reassess its funding and ownership structure.
"If they are going to grow, one of them [shareholders] will have to tip in extra capital. If they don't, then something like an IPO (innitial public offering) is an option. Ultimately that is a decision that needs to be made."
