The government expects to introduce the long-awaited consumer data right legislation by the end of the year.
A report on open finance released this morning says New Zealand needs to move now to create the framework necessary to get it going.
"Those who do not move quickly to create the environment, frameworks and local ecosystem of open finance fintech innovators will lose out on early opportunities," the report by FinTechNZ says.
Minister of Digital Economy and Communications David Clark said in a speech at the launch the government was putting in place the framework required but it was crucial to get things right.
"In July last year, the Cabinet Economic Development Committee agreed to the establishment of a consumer data right (CDR), and the main components of the legislative framework," he said.
"Since then, officials and I have been working to take design decisions, which have included consideration of institutional responsibilities, cost recovery, compliance and enforcement and consumer redress."
Clark said a bill covering consumer data right was expected to be tabled in Parliament by the end of the year, three years after the government flagged CDR as a priority.
"One of the first sectors being considered for designation under the CDR is banking," Clark said.
"In overseas jurisdictions, such as in the UK, we can see the effect that introducing open banking has had on increasing data portability, and how this has fed into progressing and improving open finance, and consumer and business outcomes across the board."
The industry report said there was an urgent need to develop an open finance ecosystem fit for consumers and businesses.
It said the framework would need to ensure those who were financially vulnerable had equitable and inclusive access to digital financial services.
Increasing the awareness and understanding about open finance was another challenge, as well as overcoming the structural barriers to grow a competitive and thriving open finance ecosystem.