Beyond APIs: How Open Banking Can Transform Aotearoa's Digital Future

At the Techweek25 launch on Monday evening at Deloitte’s beautiful headquarters in Tāmaki Makaurau, our keynote speaker Adrian Smith, Chief Executive of Māori fintech BlinkPay, shared a compelling vision for open banking not just as a regulatory framework, but as a blueprint for building inclusive digital infrastructure across Aotearoa.

Open Banking: More Than Just Compliance

Smith, who helped build the open banking movement in the UK before returning to New Zealand, emphasised that open banking isn't merely about technical specifications or regulatory checkboxes.

"This isn't about APIs or compliance checklists. It's about building that infrastructure for trust, choice, and inclusion, and ensuring it works for everyone. Not just those that are tech-savvy—for everyone," Smith explained.

His vision positions open banking as a case study for how we might approach broader digital transformation across the market, with lessons that extend far beyond financial services.

The Customer Product Data Act: A Foundation for Change

A significant milestone for New Zealand has been the introduction of the Customer Product Data Act, which Smith described as providing a legal foundation for data ownership.

"Basically, it gives you ownership of your own data. Historically, if you walked into a bank and said, 'please give me my data,' they could say 'we'll happily make that available for you for the low, low price of..." Smith noted, highlighting how the legislation changes the power dynamics around personal data.

The banking sector has been designated first under this legislation, which is coming into law at the end of the year. Energy providers have also been designated, with telcos and insurers to follow. This will enable Kiwis to access their own data, seek better offers, and make more informed decisions based on their personal information.

The Challenge: Bringing Everyone Along

While New Zealand has made significant progress with the big four banks now on board, Smith highlighted a critical challenge—the regional and smaller banks that aren't yet participating.

"Without them, we don't just limit participation. We weaken the promise of open banking. We run the risk of leaving people behind," Smith warned. With 10-15% of banked New Zealanders currently unable to access open banking services, there's still work to be done.

Smith invoked the philosophy of BlinkPay's original founder, Daniel Karehana: "We leave no one behind. We bring everyone with us."

Beyond Numbers: The Quality of Connection Matters

In a particularly insightful moment, Smith challenged the common platform theory assumption that more participants automatically means more value.

"The value of open banking isn't just about how many are connected, it's about how well they're connected. Usability, standardisation, and trust are just as important as access," he explained.

Using the analogy of his first Nokia 100 mobile phone in 1993 while at the University of Waikato, Smith illustrated how a network with few participants offers limited value. But he also stressed that for fintechs, quantity alone isn't enough—the connections need to be useful and usable.

"It needs to do something useful that's valuable. There's no point having the best tech in the world if no one can use it other than your engineers." — Adrian Smith, CEO of BlinkPay

What Government and Industry Can Do

Smith outlined specific actions for both government and industry to advance open banking and digital infrastructure more broadly:

For government:

• Provide clarity of roadmap and signal intent, even without immediate funding

• Use market power by adopting open banking for government transactions (IRD, MSD)

• Back coordination efforts and design shared services with strong governance

For the tech sector:

• Lower barriers for participation through integration layers that reduce complexity

• Create "open banking in a box" toolkits

• Focus on consent, authentication, and reliability

• Treat themselves as builders of digital infrastructure, not just vendors
  

A Model for a Digital Aotearoa

Drawing on insights from the Bill and Melinda Gates Foundation, Smith highlighted three essential components for a digital economy: digital identity, instant transfer of data, and instant transfer of money.

"When we did faster payments in the UK back in 2007, we unlocked 1.6% GDP overnight. By helping small and medium-sized enterprises not have to worry about cash flow because the money arrived immediately," Smith shared, illustrating the tangible economic benefits of digital infrastructure.

The vision he presented was one of "a connected Aotearoa where digital services work seamlessly, inclusively and transparently. Where open doesn't just mean technically compliant, it means actually usable. Where every regional bank, every niche fintech, every Kiwi household can participate."

What's Next

As Techweek continues through 25 May, we'll be exploring more examples of how digital infrastructure is enabling innovation across sectors. Check out the full programme here.