Open banking in New Zealand advances with NZD $13.77m spent

Payments NZ has released a report outlining six years of progress in open banking, highlighting industry delivery, collaboration and partnerships across New Zealand's open data ecosystem.

The report, titled "Shaping Open Banking Together", reviews efforts and outcomes achieved by the sector since the establishment of the API Centre in 2019. Key metrics include the release of 25 open banking API standards, adoption by four major banks covering over 80% of customer accounts, and the engagement of more than 1,100 users in an API sandbox environment resulting in the development of 235 unique applications and over 13.7 million test calls.

API standards and usage

Since its inception, the API Centre has delivered six versions of API standards, with widespread implementation in the banking sector. Major financial institutions now support key open banking standards, facilitating secure and seamless access to banking services for a large proportion of New Zealanders.

The API sandbox, supported by Glueware, has played a significant role in fostering innovation, with hundreds of community contributors involved in shaping the ecosystem. Community engagement has increased markedly, from just five contributors in 2019 to over 500 in the current year, and more than 11,000 working group hours have been logged by participants.

Inclusive governance model

The API Centre has adopted a governance model developed through industry collaboration. Over a dozen versions of the API Centre Terms and Conditions have been refined in consultation with banks, fintech firms, regulators and other stakeholders. This approach is described as being based on trust, inclusion and co-design.

Collaboration has also extended to work with the Ministry of Business, Innovation and Employment (MBIE) on the Consumer Data Right (CPD) framework. Looking to the future, Payments NZ states that this inclusive and partnership-driven approach will continue as the industry transitions towards a regulated open banking environment.

"We've built a world-class foundation for open banking in New Zealand – not through mandate, but through collective mahi. This report is a chance to pause, reflect, and acknowledge what we've achieved together," says Phil Cass, Manager of Payments NZ's API Centre.

Financial investment and efficiency

Payments NZ highlights that the open banking ecosystem has been established at a considerably lower cost compared with international efforts. The total investment over six years amounts to NZD $13.77 million, which represents approximately 5% of Australia's expenditure and 4% of that in the UK for similar sector initiatives.

Phil Cass stated, "We now have upgraded, future-ready API standards being implemented by the major banks, new products hitting the market, and a strong platform for innovation. It's been a true partnership approach, and the outcomes speak for themselves."

Cass noted that New Zealand's approach has allowed for progress without the need for regulatory compulsion, saying, "Our approach in Aotearoa is unique – open banking here has been shaped by cooperation, not compliance."

He continued, "We've seen the cost of regulation in the UK and Australia, and in Aotearoa we have delivered a fully functioning ecosystem at a fraction of the cost."

"We're carrying forward the same spirit of industry-led partnership and progress as we transition to a regulated environment for open banking."

Data sovereignty and future focus

The recent release also marked the launch of Ngā Tohu Ārahi, the new Data Handling Guidelines created in partnership with Nicholson Consulting. These guidelines are grounded in the principles of Māori Data Sovereignty and have implications for the design and management of data systems in the banking sector.

Cass explained, "These guidelines are about more than compliance – they reflect our collective responsibility to design data systems with integrity and care."

Preparations are underway for the formal designation of banks under New Zealand's CPD Act, expected in December 2025. Payments NZ believes the foundations laid through the API Centre will continue to support secure, innovative and inclusive banking solutions.

"This is just the beginning," says Cass. "The next chapter of open banking will be even more impactful – and we're ready."