Coasties could soon see a shake-up in the banking sector as New Zealand’s first locally owned bank designed for open banking and AI is on the horizon.

The fintech company, Debut, has started discussions with the Reserve Bank of New Zealand, laying the groundwork to become a registered bank.

Currently, New Zealand has 27 registered banks, but only five are locally owned, with the last one registered over a decade ago.

Debut aims to change the landscape by addressing barriers faced by consumer groups like Māori and rural communities, offering services that can be accessed entirely online.

A recent Commerce Commission report highlighted the dominance of Australian-owned banks in New Zealand, which limits competition, leading to higher costs and fewer choices for consumers.

In response, the Government has accepted recommendations to promote open banking, a system where consumers can authorise third-party providers to access their financial data, enabling more personalised and competitive services.

Debut has already introduced several new services through its mobile app, including digital Mastercard debit cards, Apple Pay, and Google Pay, all available without the need to visit a branch.

Customers can create and delete multiple virtual debit cards to control spending and avoid recurring subscriptions.

In an industry first, Debut offers a 5.10% per annum universal interest rate on both transaction and savings accounts, with no penalties, lock-ups, or minimum deposit requirements.

The fintech also applies no foreign exchange fees on international transactions, making it a compelling option for travellers and online shoppers.

Artificial intelligence plays a pivotal role in Debut’s offerings, with AI-driven tools to help consumers manage their finances and detect fraud.

According to co-founder Sulabh Sharma, open banking’s introduction will empower New Zealanders by providing greater control over their data and fostering competition.

While open banking adoption has been slow in New Zealand, Sharma is optimistic, citing over 7,000 Kiwis on the waiting list for Debut’s app.

He emphasises the company’s commitment to protecting customer funds and offering low-risk investment options, ensuring broad appeal across different financial stages.

Meet Debut. Watch the YouTube video below.