Open banking on way

The Government is working on legislation to introduce open banking to New Zealand, a move Commerce Minister David Clark says will increase bank competition. Open banking is when customers can share their personal financial information with companies other than their bank, creating opportunities to get better deals. ‘‘Open banking ensures banks must share customer information if they request it, making it easier for New Zealanders to compare mortgage rates, apply for loans and switch banks,’’ Clark said. Last July, the Government agreed to establish a consumer data right framework which would require data holders like banks to ensure New Zealanders can gain access to a wider range of products and services that better meet their needs. Banks will be the first sector to implement the mechanism, he said.