New Zealand to extend open banking to SME channels

New Zealand will extend regulated open banking to business banking channels for small and medium-sized customers of the major banks.

From 1 June 2027, ANZ, ASB, BNZ, Westpac and Kiwibank must provide open banking access to all SME customers, regardless of which mobile app or website they use for online banking. Regulated open banking currently covers only specified main consumer banking channels, leaving some business-focused digital channels outside the regime.

The decision expands a system that lets customers share banking data with approved third parties. For businesses that can support services such as loan comparison tools, accounting automation, payment processing and cashflow monitoring.

Ministers said the extension is aimed at smaller firms rather than large corporates. Cabinet has confirmed banks will not have to provide regulated open banking for large corporations and institutions, citing limited demand in overseas markets and the bespoke banking systems used by bigger organisations.

Regulated open banking went live in December 2025. Since then, ANZ, ASB, BNZ and Westpac have been required to provide the service through one designated online banking channel each: ANZ goMoney, ASB Mobile Banking, BNZ Internet Banking - Personal, and Westpac One.

Those channels are used mainly by individuals, households and some SME customers. Other digital channels operated by the same banks, including services designed specifically for businesses, are not yet covered, leaving many business customers outside the current framework.

Business focus

The latest move is intended to close that gap. Officials said all small business owners using the covered banks should be able to access open banking tools from the 2027 start date, while banks are given time to build the necessary systems for the remaining channels.

Scott Simpson, Minister for Commerce and Consumer Affairs, said the policy is intended to reduce routine administration for businesses.

"This is about making life easier for businesses. It means fintechs can develop new tools for businesses, which can mean less time on paperwork and admin, and more time focusing on customers and growth," said Simpson.

He said routine finance tasks could also be handled through digital services.

"Simple things like automated accounting tools and streamlined payment systems can save businesses hours every day."

The Government cited UK figures showing businesses using open banking tools saved around 150 hours a year on basic tasks. It used that benchmark to illustrate the potential effect on administration for smaller firms.

"That's nearly a month of time gained, and that's time that can be spent growing the business, supporting staff, or serving customers."

Simpson said regulated open banking has already begun to reach retail customers through the initial rollout.

"Since regulated open banking launched in December 2025, major banks have rolled out services to customer banking channels, with fintechs already delivering innovative new tools to New Zealanders."

SME lending

Chris Penk, Minister for Small Business and Manufacturing, said the changes could be particularly relevant for smaller firms seeking credit or managing short-term finances.

"Small businesses can struggle to secure loans because they lack long credit histories or substantial collateral, but open banking products allow lenders a clearer picture of how a business is actually performing."

"Cash flow is also one of the biggest pain points. Fintechs can use open banking to address that by bringing accounts from different banks into one place, helping owners track money in and out in real time so they can avoid shortfalls and make better spending decisions," Penk continued.

"For smaller operators with fewer staff, manual reconciliation, invoicing and financial tracking take up valuable time. Services using open banking can automate these tasks, reduce paperwork and errors, and free up capacity to focus on running the business."

Decommissioned channels will be excluded if they are already due to be retired within the next two years. The aim is to avoid requiring banks to build regulated open banking functions into systems that will soon be withdrawn.

Operational questions remain around the rules for authorising data sharing on behalf of business customers. Officials are working through guidance for cases where staff are already permitted to view account information, after industry participants raised differing views on how authorisation should apply.

Another unresolved issue is the use of smartphones in authorisation processes. Some banks currently require customers to use a bank mobile app on a smartphone to authorise open banking activity, and officials said they will assess whether that creates access or compliance problems in practice.

Penk said the broader objective is to widen choice and improve day-to-day financial management for smaller firms.

"Open banking will boost competition, improve productivity, and give businesses better choices. This next step means more businesses will start to see those benefits in their day-to-day operations."

Simpson added that easy access to open banking tools is intended to boost productivity and reduce the burden on small businesses.

"Easy access to open banking tools and their wide range of benefits is all about boosting productivity and reducing the burden on small businesses. It's a key priority for this Government," said Simpson.