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New Zealand advances Open Banking with second implementation milestone

Friday 29 November 2024 12:24 CET | News

Aotearoa New Zealand has reached the second implementation milestone in its Open Banking rollout, according to the API Centre.

 

Aotearoa New Zealand has reached the second implementation milestone in its Open Banking rollout, according to the API Centre.

 

The nation’s four largest banks – ANZ, ASB, BNZ, and Westpac NZ – meet the Payments NZ API Centre’s Account Information API standard requirements. Due by 30 November 2024, this achievement will enable banks, fintechs, and third-party providers to offer an expanded range of Open Banking services.

The milestone is part of an Open Banking implementation plan established in May 2023. All four banks have confirmed readiness to partner using the Account Information API standard, marking the second major achievement in 2024.

Jane-Renee Retimana, Chief Strategy and Innovation Officer at Payments NZ, highlighted the momentum behind Open Banking, emphasizing the potential benefits for consumers and businesses. 

At the API Centre’s Open Banking Showcase on 20 November 2024, innovative solutions leveraging the Account Information API were demonstrated. Examples included Aotearoa fintech Volley’s identity verification technology, Wych’s compliance-focused platform, and Australian fintech WeMoney’s personal finance tools. Phil Cass, API Centre manager, expressed optimism about Open Banking’s progress. 

 

The account information API standard

Developed collaboratively by the API Centre and industry stakeholders, this standard enables customers to share account-specific data with registered third parties. Services such as budgeting apps and streamlined loan applications benefit from this secure data-sharing framework.

Currently, fintech Qippay has partnered with a bank using the Account Information API standard, and 17 other registered third parties are set to begin discussions with banks starting with 30 November.

Future implementation milestones include updated Payment Initiation and Account Information API standards in 2025. Kiwibank, New Zealand’s fifth-largest bank, is on track to adopt these standards by 2026.

The API Centre, governed by an industry-wide API Council, continues to guide Aotearoa’s Open Banking future, setting the foundation for secure, innovative, and consumer-centric financial services.

 

Recent New Zealand Open Banking announcements

Back in January 2024, New Zealand-based Payments NZ submitted a request to the Commerce Commission for authorisation to work with API providers and third parties, seeking authorisation to jointly develop its Open Banking with banks and fintechs.

In October 2024, the New Zealand Banking Association selected UK-based obconnect, an Open Banking provider, to deliver Confirmation-of-Payee services.


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Keywords: Open Banking, API
Categories: Banking & Fintech
Companies:
Countries: New Zealand
This article is part of category

Banking & Fintech