Following this announcement, the Bank of New Zealand has implemented the Payments NZ Account Information API v2.1 standards. This is set to enable customers in the region to safely and efficiently share their financial information with approved providers, only when Open Banking is fully operational.
In addition, the financial institution is expected to continue to focus on meeting the needs, preferences, and demands of clients and customers in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the industry.
Payments NZ represents an important step in the process of establishing the Open Banking system, and has set New Zealand’s major banks and financial institutions the task of implementing Account Information API v2.1 standards by November 2024. This initiative follows the one that took place in May 2024, when FIs and banks were required to support payments via APIs, enabling direct account payments through third-party apps.
The secure access to real-time and secure financial data will enable third-party providers and fintechs to deliver customers new, optimised, and personalised financial services and products. Potential use cases include customised budgeting tools (in which apps that offer tailored budgeting advised which is based on real-time financial data and spending habits, which will help users and customers to manage their finances more effectively), personalised savings plans (tools that design savings plans and automate transfers based on users’ financial behavior and goals), and streamlined loan applications (to simplify and speed up approval by leveraging comprehensive account information).
At the same time, the customers will have advanced financial insights (products will provide detailed analysis of spending patterns and identify new financial opportunities, aimed at optimising users’ understanding of their financial situation), as well as fraud detection and prevention (which facilitates third-party apps or solutions in order to use real-time account data to identify unusual activity, optimising security).
In addition, this will further unlock digital innovation, which will make it possible to do things like instantly and securely verifying your identity online through the information held about the customers by their bank, insurer, or company. The solution is set to find the best deal across utility or insurance firms and switch easily at the same time.
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