Open Banking in New Zealand: Why It Isn’t Just for the Big Banks

Written in collaboration with ProductCloud

New Zealand’s open banking ecosystem is evolving — fast. In March 2025, the government took a decisive step by formally designating the banking sector under the Consumer Data Right (CDR). The country’s major banks — ANZ, ASB, BNZ, and Westpac — are now mandated to implement standardised, secure APIs for customer data sharing by 1 December 2025.

But here’s what’s important: These banks were already preparing before regulation.

From as early as 2019, the big four banks were voluntarily developing and aligning with open banking API standards through Payments NZ’s API Centre. Their early participation gave them influence, insight, and a major head start on customer-centric innovation.

The New Zealand Open Banking Timeline: From Foundations to Implementation

New Zealand’s open banking journey has evolved steadily over the past decade, driven by innovation, industry collaboration, and a growing demand for more connected financial experiences.

What began with fintech experimentation and early API conversations has matured into a structured program led by Payments NZ through the API Centre.

With key milestones now approaching, including mandatory implementation dates for major banks, the country is entering a critical phase where open banking moves from theory to widespread adoption. Here’s a snapshot of the key moments shaping New Zealand’s path to open banking.

The Foundations

Transition to Legal Regime

The Opportunity for Smaller Banks

If you’re a smaller or regional bank, you may not be mandated to comply just yet — but that doesn’t mean you should wait.

In fact, choosing to participate early could be your most strategic move yet.

Here’s why.

What Smaller Banks Gain by Opting In:

1. Unlock New Growth Through Fintech Partnerships

By providing secure API access, you open the door to innovative partnerships — budgeting tools, mortgage brokers, lending platforms, and more.

Participation makes your bank a more attractive, tech-savvy partner and opens new digital revenue streams.

2. Build Deeper, Stickier Customer Relationships

Open banking isn’t just a tech upgrade — it enables richer, more personalised customer experiences. From instant onboarding to better financial insights, you can deepen loyalty and appeal to new customers looking for more modern, flexible banking.

3. Strengthen Your Competitive Edge

Being early to open banking helps smaller banks differentiate from peers and avoid being seen as outdated or slow-moving. It’s an opportunity to lead, not just follow.

4. Have a Voice in Shaping the Future

By participating now, you can influence the standards, align early with Payments NZ, and ensure your interests are represented before broader regulation lands.

5. Avoid the High Cost of Last-Minute Compliance

Choosing to act early allows you to phase implementation and control your investment. Waiting until the last moment often means rushed timelines, costly vendors, and overwhelmed internal teams.

Recommendations for Smaller Banks

1. Evaluate Technical Readiness: Assess your digital infrastructure, identify gaps, and plan for secure API implementation, and consent management.
2. Engage with Industry Initiatives: Join Payments NZ’s API Centre to stay aligned with best practices and future developments.
3. Leverage Proven Technology: Building open banking infrastructure from scratch is costly and complex. Use trusted open banking infrastructure providers to accelerate delivery

Final Thought

Open banking isn’t just a regulation — it’s a strategic opportunity for smaller banks to level the playing field.

While the big four banks began early — even before regulation made it mandatory — smaller banks now have the chance to choose progress over pressure, relevance over risk, and leadership over lag.

Don’t get left behind.

Get ahead — with Ozone API and ProductCloud.

Your Open Banking Success Starts with Ozone API

Ozone API is the leading open banking platform used globally to help banks meet regulatory requirements—fast. It offers:

• Out-of-the-box compliance with CDR and API Centre standards
• Secure, robust infrastructure tailored to banking needs
• Rapid implementation without burdening your internal teams
• Support for future-proof upgrades (like v2.3 and beyond)
• Scalability to deliver long-term cost savings

Ozone API isn’t just a technical solution — it’s a strategic enabler. Whether you’re looking to comply, compete, or innovate, Ozone API provides the tools and expertise to move quickly and confidently into open banking, — without compromising on quality or control. 

Founded by the team that designed the open banking standards in the UK. The Ozone API platform is the only platform supporting all major open banking and open finance standards around the world and the team continues to act as pioneers, designing open finance frameworks and standards for regulators around the world.

ProductCloud – Transforming product governance into your strategic edge

The team at ProductCloud led the development of the Australian CDR technology standards and has real, first-hand experience in how to approach deployment effectively. Since the inception of CDR in Australia ProductCloud has become the go to SaaS platform for Product Management, Governance and Compliance for Australian financial institutions.

Once Product Data requirements are live, major banks will automatically feed their product data into fintech search tools and aggregator services. As in Australia, smaller financial institutions were able to go early with product data avoiding the risk – of  becoming invisible. This isn’t just about compliance – it’s about being discoverable when customers and fintechs are looking.

ProductCloud enables financial institutions to stay relevant, anticipate regulatory changes, and transform product management into a hub of speed, accuracy and operational strength – while embedding product focused fair conduct and Target Market Determination compliance into daily workflows.

ProductCloud is a product information management and compliance platform that offers;

• Out of the box CDR product APIs
• Digitised best practice product management governance and processes
• Rapid, low-impact deployments for technology teams 
• Future proof upgrades as standards evolve
• Ensures that the product aspects within  CoFI, CCCFA & DTA regulations are also met