NZ's four major banks will soon provide open banking - a new way to pay and track funds. Here's how it works.
From 30 May, New Zealand's four major banks - ANZ, ASB, BNZ and Westpac - must offer the secure payment service - although some already have it in place.
It allows customers to give a third party (such as an online retailer) permission to connect to their banking information, meaning there is no need to enter credit or debit card details to make a purchase.
Open banking can be used both on retailers' websites and on their mobile app, if they have one
I use UK open banking often. I'm always asked to approve the specific access requested, and this takes place at my bank's website or app. This could be permission to take an amount of money; or for apps which manage multiple accounts (e.g. Emma) this could be all historical transactions; or my accountant uses an open banking service provider (Armalytix) to request transactions for an explicit date range. So far, touch wood, there's always been an alternative - for example I can use open banking to send my transactions to my accountant or I can manually download a CSV statement from my bank and upload it into their portal.
From my understanding, the answer is yes, on an opt in basis. Any organisation (that signs up and follows the rules) can request access and you need to approve a prompt.
However, the 30 May date is just for payments. Account sharing comes later and depends on the bank.
However, if you're worried about moving into a world where this is required... You're probably right to be worried.
It's not exactly opt in if it's "share your data or we won't give you insurance".
There are two things here. One is online payments, the other is sharing your data. For online payments, this seems to be a better option that Polipay. And most likely more private than using a credit card.
The data sharing is a whole nother kettle of fish though.
What is to stop you from creating an account that only has a connection to your insurance company....or is this supposed to be we get access to literally all of your accounts and spending habits?
I’d agree about waiting personally. Not to defend it of course, but isn't this already happening? Probably not at the banking side other than for their internal benefit (I presume as they're fairly regulated) , but at the retail , POS , even accounting system sides? Theres also all other data collection and harvesting sources - internet use basically, location data etc - but thats all known. This is likely to be a more consolidated competitor in that space I guess. All speculation. I’m more curious so fishing for knowledge