Sector urged to speed up progress on open banking, payment systems

Minister of Commerce and Consumer Affairs Hon Kris Faafoi has told the payments sector that progress must be made on innovation and open banking.

“Speed is of the essence and the status quo isn’t an option. I do not want to see New Zealand left behind in respect of the outcomes that Open Banking could deliver in terms of economic development and benefits for consumers.”

Speaking at the Payments NZ Conference, Mr Faafoi said the principles set out in the Australian review into open banking were a good starting point: customer-focused, promoting competition, encouraging innovation, efficient and fair.

“How we get there is still very much up for debate. But the industry has a clear opportunity to deliver real, positive outcomes for consumers, businesses and the financial sector itself.”

Mr Faafoi said that while the Government had mostly stood on the sidelines as an enthusiastic supporter of payments systems innovation, he was testing whether there is more of a role for Government.

Mr Faafoi told the conference attendees that he believed there was enough creativity in the sector to open up the payments and banking sector, and encouraged them to think more broadly about how opening up payments and banking can deliver benefits to them, their customers, and the wider economy.

“But you still need to convince me that you are willing and responsive enough to take a leap and embrace a new environment.”