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Open banking will finally arrive in New Zealand by the middle of next year.
Payments NZ, which supervises the country's payments system, said the four main banks - ANZ, BNZ, ASB, and Westpac - will be ready by May next year to start implementing open banking, with Kiwibank due to join in 2026.
Open banking allows the sharing of customer data between financial institutions, so companies can offer alternative deals, but requires government action to bring in the necessary data protection rules.
Payments NZ chief executive Steve Wiggins said there was already limited open banking going on, but bringing the four main banks into line with common standards would result in consumer benefits.
"It enables consumers to have more choice in who they want to share their financial data with and how they want to make payments.
"It encourages greater competition and customer innovation by allowing consumers to access a wider range of products and services from different providers. Over time, more new players will join the ecosystem and I look forward to seeing innovation thrive as a result."
The government last year committed to bring in a consumer data right framework (CDR) to give consumers the right to have their data shared.
Wiggins said the broader financial services industry could now plan for the future.
"Third parties, such as fintechs and payments service providers, which are interested in partnering with banks to develop these products and services, now have the certainty to plan ahead."
Open banking was present overseas, notably in the UK and Europe, where it has had a mixed reception with questions raised about governance and data protection.
