Govt Moves to Introduce 'Open Banking'
November 10, 2022
Kiwis will be able to shop around for better deals from banks with greater ease under a suite of measures announced by Commerce Minister David Clark today.
Known as “open banking” the changes mean banks will be required to seamlessly share a customer’s data with a competing bank, should the customer request it. The practise is already common in the United Kingdom and in Australia, where New Zealand’s big four banks’ parent banks are based.
It’s hoped the changes will lead to more competition and lower fees.
The move is possible thanks to the consumer data right (CDR) framework, established by the Government last year, which is meant to allow consumers to access a wider range of products and services by promoting data portability.
The devil will of course be in the details. With all your detail in a nice portable data dump, no in their right mind would put it past this government to try to work out a mechanism for them to get a hold of it.