Fintech is booming, but can New Zealand build trusted, inclusive systems that also protect privacy?
As digital platforms disrupt everything from banking to investing, experts say now's the time for New Zealand to ask hard questions about how we build and safeguard trust in finance.
A panel of international and local finance leaders and academic experts will explore how finance can be harnessed for good at Trust in Finance and the Rise of Fintech, an event hosted by the University of Auckland Business School on Thursday, 22 May.
Fintech, or financial technology, spans everything from cryptocurrencies and retail investing apps to peer-to-peer lending and open banking. While these innovations promise greater access and efficiency, many platforms raise concerns about bias, exclusion, privacy, and the challenge of regulation keeping pace.
Dr Chanelle Duley, lecturer in economics at the University of Auckland Business School, says cybersecurity and data governance are central to financial trust.
"Cybersecurity is becoming one of the most pressing issues that business leaders are contending with; the annual cost of cyberattacks is estimated to reach $10.5tn globally this year.
"For the benefits of innovations in finance, including open banking, retail investing, and decentralised finance, to be fully harnessed, fintech platforms need to invest heavily in cybersecurity infrastructure."
Duley says consumers have a responsibility to demand transparency and accountability, and says regulators should promote a robust cybersecurity landscape in Aotearoa.
She also points to the Reserve Bank of New Zealand's work on a central bank digital currency, currently in the second stage of a four-stage evaluation process.
"Engaging with the public and government is vital to avoid the harms associated with rushing into issuance. Nigeria's eNaira, for instance, was stunted by several issues and uptake was recorded at 0.2 percent in 2022," she says.
"The Reserve Bank is wise to study the ways people pay as the economy becomes increasingly digital."
Inclusive finance, says Co-CEO of Tax Traders and panellist Becki Butler, isn't about building one-size-fits-all products; it's about flexible, culturally aware, human-centred design that meets people where they are.
"Māori and Pacific communities have long been underserved by financial systems not built for them. Fintech offers the tools to change that, but only if we challenge the status quo.
"True inclusion means designing alongside communities, not for them. If we simply digitise the same rules, assumptions and risk models that have historically excluded people, we'll only replicate those failures at speed and scale."
Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, says if New Zealand wants its fintech ecosystem to thrive, we need to get the balance right.
"New Zealand can effectively adapt successful approaches to fintech by ensuring regulations are tailored to local economic, social, and cultural conditions, including the historical context of Māori and Pacific communities," he says.
"Engaging directly with these communities from the outset helps create an inclusive financial environment and avoids unintentionally reinforcing historical inequalities."
The conversation will also explore how finance can be used for social good, through impact investing, socially responsible investments, and innovative finance mechanisms like green bonds or microfinance. These tools can channel funds towards individuals, projects, or communities that urgently need financial support to tackle big challenges, such as poverty, climate change, and lack of education.
Professor Rau says harnessing finance for good can come with complications.
"Sometimes, the people or communities receiving money today may never be in a position to pay it back, often due to structural issues like persistent poverty, inequality, or systemic barriers to economic advancement.
"Additionally, in certain situations, providing funds today might serve as a way to correct past injustices, such as colonial expropriation, where wealth was systematically removed from particular communities. Here, the financial relationship might be less about traditional lending expecting repayment, and more about restorative or reparative finance, acknowledging and addressing historical wrongs."
If these structural issues are tackled carefully, such as through investments in education, healthcare, infrastructure, or supporting entrepreneurship in marginalised communities, Rau says there can be significant long-term benefits.
"Over time, such targeted financial interventions can lead to sustainable growth, allowing recipients not only to become economically self-sufficient but also to contribute positively to the broader economy."
The panel also includes Christopher Swasbrook, founder of Elevation Capital and current board member of the Financial Markets Authority, and Decio Nascimento, founder of Norbury Partners. Both bring global market insight and hands-on investment experience to a discussion that will span innovation, inclusion, and regulatory responsibility in shaping the future of inclusive finance.
