Open banking in New Zealand advances with NZD $13.77m spent
Payments NZ has released a report outlining six years of progress in open banking, highlighting industry delivery, collaboration and partnerships across New Zealand's open data ecosystem.
The report, titled "Shaping Open Banking Together", reviews efforts and outcomes achieved by the sector since the establishment of the API Centre in 2019. Key metrics include the release of 25 open banking API standards, adoption by four major banks covering over 80% of customer accounts, and the engagement of more than 1,100 users in an API sandbox environment resulting in the development of 235 unique applications and over 13.7 million test calls.
API standards and usage
Since its inception, the API Centre has delivered six versions of API standards, with widespread implementation in the banking sector. Major financial institutions now support key open banking standards, facilitating secure and seamless access to banking services for a large proportion of New Zealanders.
The API sandbox, supported by Glueware, has played a significant role in fostering innovation, with hundreds of community contributors involved in shaping the ecosystem. Community engagement has increased markedly, from just five contributors in 2019 to over 500 in the current year, and more than 11,000 working group hours have been logged by participants.
Inclusive governance model
The API Centre has adopted a governance model developed through industry collaboration. Over a dozen versions of the API Centre Terms and Conditions have been refined in consultation with banks, fintech firms, regulators and other stakeholders. This approach is described as being based on trust, inclusion and co-design.
Collaboration has also extended to work with the Ministry of Business, Innovation and Employment (MBIE) on the Consumer Data Right (CPD) framework. Looking to the future, Payments NZ states that this inclusive and partnership-driven approach will continue as the industry transitions towards a regulated open banking environment. "We've built a world-class foundation for open banking in New Zealand – not through mandate, but through collective mahi. This report is a chance to pause, reflect, and acknowledge what we've achieved together," says Phil Cass, Manager of Payments NZ's API Centre.
Financial investment and efficiency
Payments NZ highlights that the open banking ecosystem has been established at a considerably lower cost compared with international efforts. The total investment over six years amounts to NZD $13.77 million, which represents approximately 5% of Australia's expenditure and 4% of that in the UK for similar sector initiatives.
Phil Cass stated, "We now have upgraded, future-ready API standards being implemented by the major banks, new products hitting the market, and a strong platform for innovation. It's been a true partnership approach, and the outcomes speak for themselves."
Cass noted that New Zealand's approach has allowed for progress without the need for regulatory compulsion, saying, "Our approach in Aotearoa is unique – open banking here has been shaped by cooperation, not compliance."
He continued, "We've seen the cost of regulation in the UK and Australia, and in Aotearoa we have delivered a fully functioning ecosystem at a fraction of the cost."
"We're carrying forward the same spirit of industry-led partnership and progress as we transition to a regulated environment for open banking."
Data sovereignty and future focus
The recent release also marked the launch of Ngā Tohu Ārahi, the new Data Handling Guidelines created in partnership with Nicholson Consulting. These guidelines are grounded in the principles of Māori Data Sovereignty and have implications for the design and management of data systems in the banking sector.
Cass explained, "These guidelines are about more than compliance – they reflect our collective responsibility to design data systems with integrity and care."
Preparations are underway for the formal designation of banks under New Zealand's CPD Act, expected in December 2025. Payments NZ believes the foundations laid through the API Centre will continue to support secure, innovative and inclusive banking solutions.
"This is just the beginning," says Cass. "The next chapter of open banking will be even more impactful – and we're ready."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
an hour ago
- Scoop
New Zealanders' Worry About Cost Of Living On The Rise Again Following The Budget 2025 Announcement
New Zealand / Aotearoa, 17 June 2025 - Ipsos New Zealand has released the 28th edition of the Ipsos Issues Monitor which tracks the issues most important to New Zealanders today and which political parties are best able to manage them. The survey has been running since 2018. The quarterly survey of 1,002 New Zealanders reveals that following a steady decline since May 2024, more than one in two (55%) consider inflation / cost of living to be the most important issue. Healthcare follows as the second highest concern, while the economy remains the third most important issue, with slight increases (by 2pp) for both issues. Notably, New Zealanders' concern for the economy has reached the highest level since February 2021. Key findings for the New Zealand market include: Inflation / cost of living is still the primary concern for one in two New Zealanders. While not statistically significant, the proportion of New Zealanders selecting this as a key issue has risen by 5 percentage points from the previous wave in February. Healthcare / hospitals remains the second top issue and continues on its upward trend, reaching its highest level of concern since tracking began (43%). Concerns around the economy continue to rise over the long-term, once again reaching the highest level seen since February 2021. Issues change in importance across generations: Inflation / cost of living is the primary concern for New Zealanders aged 18-64, while those aged 65+ are significantly less likely to be concerned about it Healthcare continues as the primary concern for those aged 65+, it ranks third and second respectively for those aged 18-34 and 35-64 Housing is the second most important issue for 18-34 age group and fifth for 35–49-year-olds, while it is outside of the top-5 issues for those aged 50+ While concern for the economy is relatively consistent across all the age groups, unemployment is more significant issue for young New Zealanders aged 18-34 (23%). Although political leaning has an impact on the perception of importance for multiple issues, both those intending to vote on the 'left' if there was an election tomorrow, and those intending to vote on the 'right' continue to agree that inflation / cost of living and healthcare are the two primary concerns facing New Zealand. However: The economy and crime are of significantly higher concern to right-leaning voters Left-leaning voters are significantly more concerned about poverty / inequality. Following a significant decline, New Zealanders' rating of the current coalition government's performance has stabilised, rising by 0.1 points to 4.3, with 39% of New Zealanders scoring it 0-3 out of 10. Labour is now perceived as the political party most capable of handling three of the top five issues – inflation / cost of living, healthcare, and housing, while National is seen to be most capable of managing the economy and crime. Beyond the top 5 issues, National is now seen as being the most capable of managing just one of the remaining fifteen issues: Defence / foreign affairs / terrorism. New Zealanders' top five concerns are largely in line with our Australian counterparts, with both countries identifying inflation / cost of living as their top issue and showing a similar level of concern for the economy. More Australians are concerned about housing than us, while more of us are concerned about healthcare. Carin Hercock, Country Manager, Ipsos New Zealand, said: 'Despite several reductions in the OCR, New Zealanders are still feeling the impact of high living costs. This is particularly an issue for young adult New Zealanders who are increasingly concerned about inflation, housing costs and unemployment.' Amanda Dudding, Executive Director Public Affairs, Ipsos New Zealand, added: 'No matter your political stance, inflation and healthcare are seen as the most important issues for New Zealanders. Healthcare is now the leading issue for 7 out of 10 New Zealanders over 65 years and is well ahead of the level of concern felt during the peak of Covid community transition. '
Scoop
7 hours ago
- Scoop
Transport Rules Reform Welcome, But Don't Forget Safety
The Motor Trade Association (MTA) supports the Government's focus on reforming transport rules for the benefit of the sector and the public. However, MTA cautions that public safety must not be compromised by any changes. Transport Minister Chris Bishop has announced a work programme to increase productivity and efficiency through comprehensively reforming New Zealand's land transport rules. MTA Head of Advocacy James McDowall says MTA has been actively involved as part of the core group of industry stakeholders engaging with the Minister and the Ministry of Transport on the work programme. 'Evaluation of measures that reflect and are fit for purpose for the modern fleet on our roads is timely,' Mr McDowall says. 'The advent of new technologies, particularly in regard to safety, means many vehicles on our roads are vastly different from those even just ten years ago.' MTA believes the Warrant of Fitness (WoF) is overdue for review, both in terms of new and old vehicles. New vehicles have safety features that simply do not fit the current WoF inspection template, while at the other end of the scale, there are now 25-year-old vehicles which only need to undergo a Warrant of Fitness check once a year. 'This raises serious questions around safety, and it is appropriate that the review takes WoF frequency into account,' Mr McDowall says. 'Improving the role of digitalisation also reflects modern trends and overseas experience. Many New Zealanders travelling abroad remark on the lack of stickers on vehicle windscreens. It is time for that conversation here.' Any overview of regulation that removes 'red tape' and improves efficiencies and processes is a win for both the transport sector and the traveller, MTA believes. This initiative is a good example of how changes to rules – often overshadowed by major legislative reforms – can deliver meaningful benefits across the system. 'We're keen to see it progress, particularly given that MTA members carry out the majority of WoF inspections across New Zealand,' Mr McDowall says. 'We welcome the opportunity to continue working with the Government to update and simplify transport rules and regulations.'
Otago Daily Times
7 hours ago
- Otago Daily Times
Labour moves ahead in cost of living poll
By Russell Palmer of RNZ Labour has overtaken National as the party New Zealanders consider most able to handle the cost of living, according to the latest Ipsos Issues Monitor survey. The topic has remained the top concern for New Zealanders since February 2022, and has now gone up five points since the last survey in February 2024 - bucking a steady downward trend. Labour overtaking National on ability to handle the issue for the first time since October 2021 - climbing 4 percentage points to 32%, compared to National's 1-point drop to 31 - will be a worry for Prime Minister Christopher Luxon who made it a key election issue in 2023. Labour also remains New Zealanders' top pick on the number 2 issue healthcare - rising 4 points to 40% to National's 24, up 1 point - with the issue also increasingly a concern, hitting another new record at 43%. National is still on top when it comes to the economy at 35% but that's a 1-point drop from February, Labour closing the gap by the same amount, rising to 30%. Concern about the economy lifted 2 points to 32%. Housing and law and order are the fourth-equal concern at 25%, with worry about housing dropping 2 points and law and order holding steady. Labour gained three points to 32% on housing while National stayed steady at 27%, and Labour gained 4 points to 26% on law and order with National still in the lead but dropping two points to 34%. Labour has also overtaken National on petrol prices and taxation, meaning it's now considered the party most able to handle all the 6th to 20th-ranked issues other than climate change (Greens), pollution and water (Greens), Issues facing Māori (Te Pāti Māori) and Defence/Foreign Affairs (National). Ratings of the coalition's performance rose slightly from the last survey's record low of 4.2 out of 10, to 4.3. The Ipsos New Zealand survey was carried out between May 23 to 30 and asked 1002 New Zealanders what they thought were the top three most important issues facing the country today. The poll is conducted through online panels, and has a margin of error of +/- 3.5 percentage points. It had no external sponsors or partners, is initiated and run by Ipsos "because we think it is important for businesses and organisations to understand the challenges that New Zealanders face in the context of their everyday lives". Results were weighted by age, gender and region to reflect the wider New Zealand population. Some results may sum to 100% and others may show a difference higher or lower than the actual due to rounding, multiple responses, or the exclusion of "don't know" or "not stated" responses.
