Bank aims to fast-track fintech partnerships and consumer adoption
Westpac NZ is accelerating the rollout of open banking by removing a key cost barrier for fintechs—announcing that standard API requests will be free for accredited third-party providers for at least 12 months.
“Allowing fintechs to integrate into our open banking APIs for no cost should create a more affordable business model for them and ultimately speed up access for Kiwi consumers to a wide range of affordable open banking experiences,” said Russell Jones (pictured), Westpac NZ chief information officer.
The move comes as open banking gains momentum in New Zealand, with government support and growing industry engagement.
The government recently issued guidance capping open banking charges at one cent per successful API call for account information and 5 cents per transaction for payments.
Westpac already processing thousands of open banking payments
Jones noted that Westpac has experience in this space, being an early adopter of Online EFTPOS back in 2019.
“As an early participant in Online EFTPOS from 2019, we understand the value of providing consumers with more options for making payments and managing their money in a safe and secure way,” he said.
Jones added that existing fintech partners have already been informed about the fee waiver.
“We already have agreements in place with a number of fintechs, and we’ve notified them of their reduced pricing, which we’ll review in 12 months’ time as the open banking landscape evolves. We expect to enter into agreements with a number of new fintechs in the near future,” he said.
Jones said the bank is already facilitating thousands of open banking payments each month, with volumes expected to grow as consumer trust and awareness increase.
Collaboration and trust key to open banking
Jones stressed that coordinated industry development will be crucial to open banking’s long-term success. He said Westpac supports a more inclusive ecosystem that eventually involves all financial services participants.
The bank is also anticipating the release of MBIE’s central accreditation model, which Jones said would make onboarding more efficient by eliminating the need for multiple bilateral agreements between fintechs and banks.
He emphasised that consumer trust will be essential to widespread adoption.
“Consumer confidence is also key to the successful uptake of open banking, and we continue to work with the industry on future API standards that are safe and secure, as well as providing a seamless and efficient partnering process with third parties that creates trust in the system,” Jones said.
He added that Westpac is on track to meet the May 30 deadline for implementing version 2.3 of the Payments NZ API Centre’s Payment Initiation plan, which he said would give customers greater flexibility with both one-off and recurring payments.
Open banking momentum builds across NZ financial sector
Westpac’s move reflects growing industry consensus that open banking could transform New Zealand’s financial landscape—though significant operational and regulatory hurdles remain.
While the sector anticipates increased innovation, customer empowerment, and competition, progress hinges on resolving infrastructure gaps, clarifying liability, and implementing a streamlined accreditation framework.
