Open banking takes shape
What it means for mortgages, money management, and market competition.
New Zealand is moving toward a more connected and competitive financial future, with the government setting a firm deadline for open banking to go live by the end of 2025.
Commerce and Consumer Affairs Minister Scott Simpson has confirmed the banking industry will be the first to operate under the new Customer and Product Data( CAP) Act 2025 – a cornerstone in the government’ s plan to shake up tightly held sectors like banking, energy and telecommunications.
Under the new framework, the four major trading banks – ANZ, ASB, BNZ, and Westpac – are required to have compliant open banking systems in place by December 1, 2025, while KiwiBank has until mid-2026 to comply.
BANKING ON CHANGE
Open banking is poised to transform the way New Zealanders interact with their finances.
At its core, the system enables individuals to securely share their banking data with accredited third parties, such as fintech firms and digital lenders, thereby unlocking a wave of innovation across personal finance, lending, and payments.
Minister Simpson says the goal is to inject greater competition into the sector and put power back in the hands of consumers.
“ We’ re leaving no stone unturned to drive innovation and lower costs for Kiwis,” he said.“ Banks should be fully prepared so customers can take advantage of open banking from day one.”
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