Lack of open banking knowledge exposed
A new survey from BNZ revealed that while 60% of New Zealanders have heard of open banking, only 26% truly understand its benefits.
Open banking allows customers to securely share financial data with trusted third parties, such as fintech companies, enabling tailored products and services like budgeting apps and faster loan applications.
“After learning more, 73% of respondents expressed interest in using open banking services,” said Karna Luke (pictured above), BNZ executive, customer products and services.
“This shows Kiwis are open to innovative financial management solutions but need better information to feel confident about using the technology.”
Security risks from screen scraping
The survey also identified risky practices, with 66% of respondents admitting to using payment services reliant on screen scraping – where users share their banking login credentials with third parties, exposing sensitive data.
“Open banking provides a far more secure alternative, allowing customers to share financial data without giving up login details,” Luke said. “But our survey shows a big gap in awareness, particularly around security benefits.”
Bridging the knowledge gap
BNZ is focused on educating customers about open banking’s benefits.
Since 2018, the bank has collaborated with fintechs to develop products and services that showcase open banking’s potential.
“More than 250,000 BNZ customers already use services made possible through open banking,” Luke said.
However, the BNZ leader stressed the need for continued education.
“We’ve made progress, but we must do more to build trust and ensure New Zealanders can fully benefit from open banking,” Luke said.
Consumer data right and government involvement
Luke also highlighted the importance of the consumer data right (CDR), currently being advanced in Parliament.
The CDR will establish rules for secure data sharing and protections to foster trust in open banking services.
“The CDR will provide the legal framework to ensure people feel secure using these new services,” Luke said.
Luke also welcomed the government’s commitment to explore early adoption of open banking by government agencies, which could help boost public trust and understanding.
“We’re committed to working with regulators and the industry to make open banking a tool for financial empowerment and choice for all New Zealanders,” Luke said.
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