Major banks now required to share data via secure APIs
Open banking is now officially live in New Zealand, with ANZ, ASB, BNZ and Westpac required from 1 December to support secure data sharing with accredited third parties.
Regulations supporting open banking, made under the Customer and Product Data Act 2025, have taken effect and mark the first step in a phased rollout of regulated data sharing.
Big four mandated to support open banking
Under the new rules, the following banks must have open banking systems in place now:
Kiwibank will be required to support open‑banking‑based payment services from June 2026 and other data‑sharing services from December 2026. All other banks and deposit‑takers can opt in voluntarily from today.
The regulations set out which institutions are designated and how open banking will be phased in over time.
What open banking allows – and how it’s secured
The new regime aims to support innovation and competition by giving customers a safe way to share their banking data with trusted third‑party services – without handing over login details to unregulated providers.
“The regulations aim to support innovation and enhance competition in the banking sector by creating opportunities for secure customer-centric services," said the Ministry of Business, Innovation and Employment (MBIE) in a media release. "These new services could include budgeting tools, tools for fast mortgage comparisons, and new payment methods.”
“The new open banking regulations provide a reliable and secure way for customers to share data to access the benefits of new services without needing to provide banking details to unregulated organisations.”
Data can only be shared with a customer’s explicit authorisation, and third‑party providers must be accredited by MBIE to access this information.
“Importantly, the regulations ensure that security of consumer data is paramount," MBIE said. "Data can only be shared under the customer's explicit consent, and third-party requestors (such as fintechs) must be accredited by the Ministry of Business, Innovation and Employment.”
MBIE is now accepting applications from organisations wanting to become accredited data requestors.
“Accredited data requestors will receive MBIE’s ‘accreditation mark’, which they can display to show they are trusted and verified,” it said.
Standards built on Payments NZ open‑banking work
To minimise duplication and disruption, MBIE has entered into a standards‑licensing agreement with Payments NZ.
This agreement allows MBIE to incorporate the Payments NZ API Centre’s version 2.3.3 standards for data, payments and API security directly into regulation – providing continuity for banks and fintechs already working with those standards.
Minister: “Endless” opportunities from faster approvals to cheaper payments
Commerce and Consumer Affairs Minister Scott Simpson said open banking should lead to a wave of new tools and services.
“Open banking goes live today, opening the door to faster loan approvals, easier bill management, and personalised budgeting insights,” Simpson said in a media release.
“From budgeting tools to faster mortgage comparisons and low-cost payment options, the opportunities and innovations presented by open banking are endless.
“Open banking makes it easier to switch banks by giving customers a safe, regulated way to share their financial information.
“It will make mortgage applications faster by allowing third-party services to securely gather the right financial documents in one place, especially helpful for people with accounts across different banks.
“Budgeting becomes easier too. Instead of trawling through statements, secure open banking tools can highlight spending patterns, help you stay on top of bills, and identify ways to reach your savings goals.
“Small businesses will also benefit from more choice in financial management and invoicing tools, helping them get paid faster and access innovative, lower-cost payment solutions.
“How can customers get started with open banking? Simply give consent when you use a bank or financial service that supports it, and your data is shared securely under the new regulated system.”
Global best practice – and more competition
Simpson said New Zealand’s regime is aligned with international leaders.
“The regulations, released in October, align with global best practice and build on successful models in Australia and the UK, where open banking has sped up home loan approvals and enabled new consumer-friendly apps,” Simpson said.
“Open banking will accelerate innovation and enhance competition in the banking sector, creating opportunities for fintechs and smaller players to deliver services that traditional banks have been slow to offer.
“I encourage fintechs to get their accreditation applications in as soon as possible to help Kiwis benefit from open banking.”
Open banking will take time to bed in, but from 1 December the regulatory foundations are in place – and advisers who embrace the new tools and data sources early are likely to gain an edge in speed, accuracy and client experience.
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