Monopoly Watch's executive director believes customers are getting a raw deal from banks

A draft Commerce Commission report's found a two-tier system divides smaller banks from ANZ, ASB, BNZ and Westpac.

It says the big four lack competition, have price matching strategies, and focus on profit margins -- stifling innovation and underinvesting in platforms.

Monopoly Watch's Tex Edwards says it can be a marathon to rework such market structures.

He says in other countries, government's have split up banking organisations.