- Hon Scott Simpson
The Government is moving swiftly to ensure Kiwis will be able to benefit from open banking by Christmas this year, says Commerce and Consumer Affairs Minister Scott Simpson.
"Recently our Government passed the Customer and Product Data Act - one of the items in our Quarter 1 Action Plan to improve competition in banking, energy, and other key sectors that touch the daily lives of Kiwis.
"I'm pleased to announce that Cabinet has now agreed to designate banking as the first sector under the Act. This sets out the rules for how open banking will work in practice in New Zealand."
Open banking allows third parties such as fintech (financial technology) companies to access data held by banks on behalf of a customer, with the customer's consent. Fintechs use that data to develop innovative products and services that traditional banks might not offer, such as faster payments, speedier mortgage comparisons, and money-saving apps.
"The big four banks - ANZ, ASB, BNZ, and Westpac - will need to make sure their open banking systems meet the new requirements by 1 December. Kiwibank will need to be ready by June 2026.
"Our Government is absolutely committed to boosting competition in the banking sector to provide greater choice and lower costs to Kiwis, and that's why we've acted promptly to bring open banking another crucial step closer to reality. We are leaving no stone unturned to boost competition across our economy, and I expect the banks to be fully prepared so their customers can take advantage of open banking from day one.
"Designating the banking sector is necessary to speed up the uptake of open banking in New Zealand. It will ensure the major banks are not creating unnecessary barriers for fintechs and smaller players.
"There are many examples overseas of open banking in action, and I can't wait to see similar success stories in New Zealand. For example in Australia, open banking has helped speed up home loan applications as customers can share their banking data with brokers much faster than before.
"I've also seen innovative apps that help consumers find and cancel forgotten or unwanted subscription services, which would otherwise be quietly siphoning their hard-earned money.
"I'm hoping this Christmas will be an extra joyous one for Kiwi consumers, with better competition among our banks and greater choice on the horizon."
Note to editors:
A fact sheet with further information is attached.
