Government sets December deadline for open banking rollout

New Zealand is set to introduce open banking by the end of 2025, after the Government confirmed the banking sector would be the first to operate under new consumer data-sharing laws.

Commerce and Consumer Affairs Minister Scott Simpson announced that Cabinet had designated banking as the first sector under the Customer and Product Data Act 2025, which aims to improve competition in key industries, including banking, energy and telecommunications.

Under the new framework, the country’s four major banks – ANZ, ASB, BNZ and Westpac – must ensure their open banking systems are compliant by 1 December 2025. Kiwibank has been given an extended deadline of June 2026.

A major step toward banking innovation

Open banking will allow customers to give consent for third parties such as fintech companies to access their banking data. These companies can then develop new tools and services – such as faster mortgage comparisons, better budgeting apps and quicker payment methods – that traditional banks may not offer.

Mr Simpson said the Government’s goal was to accelerate innovation and lower banking costs. “We are leaving no stone unturned to boost competition across our economy, and I expect the banks to be fully prepared so their customers can take advantage of open banking from day one,” he said.

Five ways open banking may impact New Zealand

Faster mortgage processing. Open banking can allow advisers and lenders to instantly access verified income and expense data – cutting down delays in loan approvals.

Better financial advice and planning. Budgeting apps will be able to offer real-time insights and personalised recommendations based on actual spending patterns.

Increased competition among banks. As fintechs enter the market with flexible solutions, traditional banks may be pushed to improve rates and service quality.

Easier account switching. Consumers may find it simpler to compare and change banks, leading to more dynamic pricing and better offers.

Smarter subscription management. Apps may help people track recurring payments and cancel unused subscriptions more easily, reducing unnecessary costs.