You may have started hearing more about “open banking” over the past few months.
From 1 December 2025, regulated open banking officially launched in New Zealand. While the term may sound technical, the concept is relatively simple: it gives customers the ability to securely share their banking data with approved third-party providers if they choose to.
We’ve taken a closer look at what this means in practice, how it works, and what safeguards are in place. This is the first in a short series exploring how open banking may affect every day financial decisions.
Open banking allows you to give permission for accredited financial technology providers (often called FinTechs) to access certain banking information, such as transaction history or account balances, through secure digital connections known as APIs.
Importantly:
Previously, some digital budgeting tools relied on “screen scraping,” which involved sharing login credentials. Under regulated open banking, that practice is replaced by secure, permission-based access.
Under the Customer and Product Data Act 2025, New Zealand introduced a regulated framework for open banking.
From 1 December 2025:
This brings New Zealand more closely in line with international markets such as the UK and Australia, where open banking has already been operating for several years.
The Ministry of Business, Innovation and Employment (MBIE), which oversees the framework under the Customer and Product Data Act 2025, has stated that regulated open banking is intended to increase competition, support innovation and give customers greater control over how their financial data is used.
Industry infrastructure providers, including Akahu, have described the transition as a move away from informal data-sharing methods toward a secure, permission-based system built on regulated APIs and clear consent standards.
Consumer advocates have also emphasised that the success of open banking depends on customers understanding what they are agreeing to and only sharing data with accredited providers displaying the official trust mark.
In short, the framework is designed to place control with customers but informed participation remains essential.
When used appropriately, open banking can support tools that:
Over time, members may begin to see more financial apps or services offering open banking integration.
For some people, these tools may help improve visibility over spending, simplify processes or make comparing products easier. For others, it may simply be something to be aware of.
Security is one of the most common concerns and it’s reasonable to ask questions.
Under the regulated framework:
That said, as with any digital service, members should:
Open banking is designed to improve security compared to older methods, but it still requires awareness and good digital habits.
At its core, open banking is about giving customers more control over how their financial information is used.
As more services begin operating within this regulated framework, understanding how it works and what your rights are, will help you make confident decisions about whether to participate.
We will continue to explore open banking in future issues, including practical guidance on how to identify accredited providers and when these tools may be useful.
Our focus is on helping members build long-term financial resilience through clear, practical information.
As open banking becomes more widely adopted, we’ll continue to assess how these regulated tools may support clearer visibility, better decision-making and improved financial outcomes, while keeping security and informed choice front of mind.