With open finance in its infancy, FinTechNZ executive director Jason Roberts believes New Zealand is in the perfect position to leverage this technology to reduce financial exclusion, address inequities, and lay down the foundations for a strong digital economy underpinned by the introduction of long-awaited consumer data rights legislation later this year.
"Open finance, if done right, provides an enormous opportunity to address inequities, both now and in the foreseeable future, helping Kiwis better manage their finances," Roberts said.
Open finance makes it possible for individuals and businesses to retrieve and use various financial data supplied by them or created on their behalf by a provider – whether a bank, insurance company, utility or any firm that holds financial transaction data – giving access to their entire financial footprint.
The fintech is expected to further disrupt the way Kiwis borrow, lend, spend, store, and transfer money.
"Disruptive technologies are revolutionising traditional financial services, creating new services for consumers and opportunities for start-up entrepreneurs and corporate innovators," Roberts said.
FinTechNZ, an industry group that connects financial service providers, tech innovators, investors, government regulators, and financial educators, prepared a report about the potential of open finance, set to be launched on 30 March by Digital Economy Minister David Clark.
