New Zealand Government to launch open banking by 2024
Better late than never.
With open banking becoming “commonplace” around the world, New Zealand is looking to catch up with its international counterparts by launching open banking by 2024.
The news comes a year after the New Zealand government agreed to establish a consumer data right framework, similar to that pioneered in Australia, that would give consumers ownership over their data.
Today’s announcement is that banking data will be the first to be brought under New Zealand’s framework, albeit in a process that will still take two more years.
“Open banking is a requirement on the Australian-owned banks’ parent companies across the ditch and is a fixture of the banking system in the UK,” New Zealand’s minister of commerce and consumer affairs David Clark.
“It’s a commonplace tool used overseas to increase competition and make it easier for customers to get better deals.”
“At a moment in time where cost of living is high around the world, consumers should have the power to shop around for better deals, and make sure they’re getting the best bang for buck out of their investments.”
While Clark and the New Zealand Government are suggesting the launch is a ‘cost of living’ response, the reality is that New Zealand is lagging painfully behind the rest of the world.
Open banking launched in the UK and across much of Europe in 2018 and is now increasingly used both for data sharing and payments, and since 2020 Australia has had an open banking framework in place.
But while regulators in New Zealand have been slow to act, the banking industry there has been pushing ahead via industry group Payments NZ and partnerships between the big banks like ANZ and open banking providers like Bud.
“As an industry we are creating world class payments for Aotearoa [New Zealand}. But there is more work to be done and the Payments NZ API Centre will continue to lead open banking,” said Payments NZ in response to the government’s announcement.