The government is considering open banking options for New Zealand customers.
Open banking involves consumers choosing to share their banking data to access new or improved products or services. This could include financial or budgeting advice, dashboards that display a range of financial information in one place, more streamlined and personalised loan applications, and different ways of making payments.
Commerce and Consumer Affairs Minister Kris Faafoi said open banking is already a requirement in the UK and other countries are following suit. He is travelling to Sydney today (September 28) to progress open banking options in New Zealand.
“In New Zealand, trials are underway and Australia recently announced it will be introducing a consumer data right that will give customers access to open banking,” Faafoi said. “I want to see that work while I am considering whether there is a role for the New Zealand government in opening up New Zealand’s banking regime further.
“My meetings will inform this thinking, including how we deal with important issues like privacy, data security and consumer empowerment,” he added.
The minister will meet with Scott Farrell, who chaired the Australian Government’s review into open banking, and Katharine Kemp, a law professor with a particular interest in ensuring that open banking works well for consumers. He will also discuss open banking with Macquarie Bank.
“New Zealand has the advantage of being able to learn from other countries who are already implementing open banking,” Faafoi said. “This means there’s opportunity for business in the open banking space as well as advantages for consumers able to benefit from new and innovative products.”