Bank of New Zealand (BNZ) has become the first bank in the region to meet a major milestone set by governance organisation Payments NZ, having taken another step towards open banking.
Bank of New Zealand has implemented the Payments NZ Account Information API v2.1 standards, which when open banking is fully operational, will enable New Zealanders to safely and securely share their financial information with approved providers.
Major banks in New Zealand will have to implement these standards by November this year, following a May 2024 requirement for major banks to support payments via APIs, enabling direct account payments through third-party apps.
Karna Luke, executive of customer products and services at Bank of New Zealand
“While it sounds a little dull, API v2.1 is really the engine room of open data,” explained Karna Luke, executive of customer products and services at Bank of New Zealand. “It’s the piece of the tech puzzle that means our customers have full control over what data they share, who they share it with and importantly, it gives them control to stop sharing their data too.
“The fact we’ve been able to reach this milestone three months ahead of the deadline reflects the commitment that BNZ has made to support the implementation of open banking.
“Over 250,000 BNZ customers are already benefitting from innovative services made possible through this technology, including services from Xero, Volley, and Blinkpay, all of which connect to BNZ through secure APIs.”
Driving the future of open banking in New Zealand
Offering secure access to real-time financial data enables third-party providers and fintechs to offer highly personalised financial products and services to customers.
Potential use cases include:
Personalised budgeting tools: Apps that offer tailored budgeting advice based on real-time financial data and spending habits, helping users manage their finances more effectively.
Customised savings plans: Solutions that design personalised savings plans and automate transfers based on users’ financial behaviour and goals.
Advanced financial insights: Tools that provide detailed analysis of spending patterns and identify new financial opportunities, enhancing users’ understanding of their financial situation.
Streamlined loan applications: More efficient loan processes that simplify and speed up approval by leveraging comprehensive account information.
Fraud detection and prevention: Facilitating third-party apps or services to use real-time account data to identify unusual activity, improving security.
“Being the first bank in New Zealand to deliver this API demonstrates our focus on helping drive the future of open banking in New Zealand. We’re excited to see more fintechs and developers join those we’re already working with to leverage this technology to create innovative solutions that will benefit our customers and the country,” Luke added.
“It’s also important to remember that banking services are just the beginning. The Customer and Product Data Bill currently progressing through Parliament will establish a Consumer Data Right (CDR) in New Zealand, enabling open data sharing across multiple sectors.”
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