Open finance benefits

Open finance is tipped to become the standard for consumers’ financial welfare and empowerment, according to a new Aotearoa fintech research report.

FinTechNZ executive director Jason Roberts says the huge opportunities for Kiwi businesses and consumers can’t be ignored; with open finance set to increase competition and innovation across many sectors.

“Emerging fintech such as open finance is redefining the way we borrow, lend, save, spend, store and transfer money. Disruptive technologies are revolutionising traditional financial services, creating new services for consumers and opportunities for start-ups,”
he adds.

The report says there is a low level of awareness and understanding in New Zealand about open finance and the benefits it offers, and this needs to be improved.

It suggests that improvements in the connectivity of financial systems, computing power and data collection offer an opportunity to overcome New Zealand’s tyranny of distance and manoeuvre closer to the centre of the emerging framework of digital trade and finance.

In brief

FinTechNZ is a not-for-profit that brings together New Zealand financial service providers, tech innovators, investor groups, government regulators and financial educators.

Open finance means individuals and businesses will be able to access and use any financial data supplied by them or created on their behalf by their provider, be that a bank, insurance company, utility or any firm that holds their financial transaction data.