New Zealand Opens Draft Open Banking Regulations For Consultation

August 19, 2025
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The Ministry of Business, Innovation and Employment (MBIE) has published draft regulations for comment, marking a step forward in the development of open banking in the country.

The Ministry of Business, Innovation and Employment (MBIE) has published draft regulations for comment, marking a step forward in the development of open banking in the country.

The consultation, launched on August 15, 2025, invites comments on two exposure drafts: the first covers regulations designating the banking sector under the Customer and Product Data Act 2025, while the second sets out general requirements for regulated data services under the same legislation.

The proposed regulations designate certain banks and other deposit-takers as data holders.

They also classify certain information about bank and other accounts as designated customer data, and specify certain payments as designated actions.

They propose that accredited requesters comply with requirements for making information available and that they must inform a chief executive if they are likely to become insolvent or be declared bankrupt.

Submissions are due by August 29, 2025.

Accelerating progress

The consultation signals an acceleration in the country’s open banking efforts and marks the first sector designation under the Consumer Data Right framework established in the Consumer and Product Data Act.

The act, which came into force in March 2025, aims to enhance consumer data rights by enabling individuals and businesses to share their financial data with authorised third parties securely. 

Under the act, designated data-holding businesses with a consumer’s consent may share personal data with accredited third parties.

The regulations mark another step in New Zealand’s journey towards establishing a secure, standardised, consumer-driven open banking framework.

The government expects the framework to be in place by December 2025, with a phased rollout and delayed compliance dates for some institutions.

The country’s Commerce Commission called for an acceleration in open banking to boost competition in a report in 2024.

It also granted conditional authorisation to Payments NZ to develop a framework for open banking, in a bid to disrupt the "oligopoly" of the country’s four largest banks.

Assertive leadership

New Zealand’s decisive approach to open banking contrasts with the more leisurely pace being taken by the UK.

The UK government has hailed open banking’s “significant untapped potential”, and it is at the heart of the Financial Conduct Authority’s (FCA) five-year strategy to support the government’s economic growth agenda. 

Nonetheless, open banking is currently at a crossroads in the UK – despite achievements such as passing key regulatory milestones, rising usage and a robust ecosystem, its long-term impact depends on addressing a number of challenges.

These include overcoming consumer inertia and loyalty to card-based payments, devising effective commercial models (especially for variable recurring payments or VRPs) and improving consumer protections.

Earlier this month, as covered by Vixio, the FCA outlined the responsibilities of the UK’s forthcoming open banking standard-setting body. 

The Future Entity will be responsible for developing and enforcing common standards on minimum service levels and interoperability across open banking.

The regulator’s decision to design the organisation as a not-for-profit limited company rather than a public body, with the ability to operate commercial schemes, positions its strategy midway between a fully state-owned and -led organisation and a voluntary, market-led solution.

New Zealand’s approach to open banking has seen the state take a more assertive role in the development and rollout of open banking.

By embedding open banking into law, setting clear mandates and empowering Payments NZ to establish critical infrastructure, the New Zealand government is steering implementation at a national policy level. 

Although the UK open banking sector is both advanced and innovative, its development has been more gradual, and has relied on the actions of regulatory agencies and collaborative industry models rather than legislative direction.

The two models present an interesting contrast, and jurisdictions that are yet to implement their own open banking frameworks will be watching to see which proves more effective.

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