The Government is pushing ahead with plans to bring open banking to New Zealand by Christmas, Commerce and Consumer Affairs Minister Scott Simpson announced.

The move follows the passing of the Customer and Product Data Act, a key part of the Government's action plan to improve competition in crucial sectors like banking and energy.

Cabinet has agreed to make banking the first sector to operate under the new Act, setting the stage for open banking.

Under the new framework, customers will be able to give third-party companies access to their banking data.

Fintechs can then use this data to develop innovative services like faster payments, streamlined mortgage comparisons, and apps that help consumers save money.

The big four banks – ANZ, ASB, BNZ, and Westpac – will need to have their systems ready by December 1, while Kiwibank has until June 2026.

For Coasties, this means more options and better deals when it comes to managing money, paying bills, or finding the best mortgage rates.

Small local businesses might also benefit from the increased competition between banks, as new financial services could offer them better solutions for managing cash flow or processing payments more efficiently.

This change could even encourage more innovation in the local financial tech space, leading to new products and services designed specifically for the needs of our community.

The new policy is aimed at increasing competition and lowering costs for Kiwis.

Minister Simpson says the Government is committed to improving consumer choice and ensuring the banking sector works for everyone.

Open banking has already seen success overseas, with apps that help Australians quickly find and cancel forgotten subscriptions or streamline home loan applications.

With the introduction of open banking, New Zealand is set to see more competitive and innovative offerings in the market, just in time for Christmas.

This shift will give consumers greater control over their finances and more options when choosing banking services.

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