Payments NZ releases standards for open banking adoption

Monday 4 March 2019 11:09 CET | News

The bank-owned organisation Payments NZ has launched a set of standards to accompany the technology it has developed to facilitate open banking.

While governments in the UK and Australia have forced banks to engage in open banking to drive more competition, the New Zealand Government has tasked Payments NZ with getting the wheels in motion on its own accord, or risk being forced to do so under regulation. Payments NZ has now reached the point where it’s released a set of standards that banks and third parties that engage in open banking can use.

The standards outline how open banking should be designed to manage risks and be secure. For example, they detail how customers who entrust a third party to access their banking information need to be informed when consenting to this. The standards don’t include any principles of reciprocity. In other words, they don’t require a third party that uses a bank’s data to reciprocate by sharing their data with the bank.

In coming months banks and third parties will be able to start applying to Payments NZ to become accredited users of the technology and standards it’s developed.

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Keywords: Payments NZ, open banking standards, Open Banking, New Zealand, New Zealand Government, Australia, payments , online banking
Countries: World

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