Bank of New Zealand (BNZ) has become the first bank in New Zealand to implement Payments NZ’s Account Information API v2.1 standards, three months ahead of the deadline.
When Open Banking is fully operational, the standards will enable New Zealanders to safely and securely share their financial information with approved providers.
New Zealand’s major banks have to implement Account Information API v2.1 standards by November this year, following the May 2024 requirement for banks to support payments via APIs, enabling direct account payments through third-party apps.
Karna Luke, BNZ’s executive of customer products and services, said: “While it sounds a little dull, API v2.1 is really the engine room of Open Data.
“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.”
Luke added that BNZ reaching the milestone ahead of Payments NZ’s deadline is a reflection of “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,” he said.
BNZ announced in July that it had launched a ‘request to pay’ app in New Zealand, following an API agreement with fintech Volley, which allows individuals to create and share payment requests.
“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.”
Earlier this month, the Commerce Commisson of New Zealand published its final report into competition in the country’s retail banking sector, which found evidence of a “two-tier oligopoly”.
It has recommended that Open Banking should be fully operational by June 2026 to stimulate competition and innovation in the country’s personal banking sector.
