New Zealand's move to open finance is gathering momentum and strong interest from international investors, FinTechNZ says.
The concept of open finance is about allowing consumers to access and use their own financial data. Photo: 123RF
FinTechNZ executive director Jason Roberts said open finance offered huge opportunities for businesses and consumers, which would be underpinned by the introduction of long awaited introduction of consumer data rights legislation later this year.
"We are in the perfect position, with open finance in its infancy, to leverage this technology to help contribute to reducing financial exclusion and lay down the foundations for a strong digital economy," Roberts said.
Open finance makes it possible for individuals and businesses 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.
"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 fintech was expected to further disrupt 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-up entrepreneurs and corporate innovators," he said.
FinTechNZ prepared a report about the potential of open finance, set to be launched on Wednesday 30 March by Digital Economy Minister David Clark.
The industry group brings together financial service providers, tech innovators, investor groups, government regulators, financial educators under a single umbrella.