As we reach the midpoint of 2025, New Zealand’s fintech sector stands at a critical juncture. The decisions made in the coming months will determine whether we emerge as a globally competitive ecosystem or remain constrained by regulatory uncertainty and market fragmentation.
For those who know me, I often describe my role as “community activator” – championing the voices and opportunities of our FinTechNZ members. While this approach has served us well, the time has come for a more assertive stance, particularly when addressing our political leaders, government agencies, and incumbent banks.
The Need for Clear Direction
The message is simple: our sector needs conviction and a clear direction of travel. We require decisive action and meaningful support to drive the foundational changes that will enable competitive innovation. We are at a pivotal moment where the clarity of rules and settings on the Consumer and Product Data (CoPD) legislation will determine our future landscape.
Recent developments offer both hope and concern. Minister Simpson’s announcements via MBIE on API fee caps represent progress, and Westpac’s decision to waive these fees for fintechs for a year is both welcome and commendable – a move I hope other banks will follow. It’s equally promising to see Westpac exploring solutions for basic transaction accounts.
However, the ongoing debate on interbank fees and surcharging remains a concern. While partially driven by public relations narratives, these discussions will undoubtedly impact the fintech landscape and the kinds of services and solutions we can sustainably offer.
Critical Questions Facing Our Community
Two fundamental questions continue to dominate conversations within our community:
1. Will MBIE deliver on payment network designation?
Will MBIE follow through on Minister Simpson’s commitment to implement the Commerce Commission’s recommendation to designate the retail payment network? The key issue here is ensuring open access to Payments NZ for fintechs of all types. Payments NZ has played a vital role in our financial infrastructure, and expanding its operational scope, with appropriate regulatory oversight, could accelerate our journey from open banking to a truly open data infrastructure impacting everything from identity to insurance and health.
2. Will we see movement on specialist bank licences?
FinTechNZ has long advocated for adjustments to compliance, risk, and capital settings to better reflect the actual risk levels of fintechs – particularly in the transactional space. A more flexible, proportionate regulatory framework would unlock innovation and enable growth across the entire fintech ecosystem.
A Vision for Open Data
What would it look like if we had a comprehensive open data framework? The government can and should take a more assertive role in enabling our ecosystem, rather than leaving so much to industry self-regulation. There’s a role beyond being a legislator/regulator through more active and directed support, including strategic funding, clear market guidance, and leveraging government’s own market power to support communities like FinTechNZ.
The national fibre rollout offers a powerful precedent – demonstrating what’s possible when vision meets strategy and the groundwork is properly laid and activated. It’s time to be not only bold but assertive in our approach to financial infrastructure.
The National Interest
Supporting the development of our fintech sector is unquestionably in our national interest – benefiting consumers, strengthening our financial system, and boosting the broader economy. The UK’s open banking success story shows what’s achievable: strong consumer adoption (25% using Open Banking monthly) and a fintech industry that exports innovation globally.
Recent advertising campaigns from Wise and Revolut – alongside Stripe, Airwallex, and others – serve as a stark reminder of what’s at stake. Without adequate support, our under-capitalised domestic fintechs risk being outpaced or replaced by a new layer of international fintech incumbents.
This raises a fundamental question: New Zealand has long seen key industries owned by internationals. Do we invest more resources into traditional banking models (like Kiwibank) or channel similar resources into nurturing our fintech sector?
Fintech for Good
Beyond commercial considerations, we’re committed to using technology for social good. We’re currently working with the Council of Financial Regulators (CoFR) to identify how fintech can support the 200,000+ Kiwis currently excluded from basic financial services. This initiative represents an opportunity to demonstrate how innovation can drive genuine financial inclusion.
I invite you to participate in this important work – your expertise and insights can help shape real, inclusive solutions that make a meaningful difference in people’s lives.
A Personal Appeal
On a personal note, I’m once again raising funds for Lifewise, an organisation doing incredible work supporting people experiencing homelessness, illness, and other challenges. For the third time, I’ll be participating in their sleep-rough event – something I find personally challenging but deeply meaningful.
If you’re able to support this cause, please consider making a donation. Every contribution helps Lifewise continue their vital work in our community.
The Path Forward
As we navigate these critical months ahead, I encourage every member of our community to stay actively engaged. Provide feedback on consultations, make submissions on proposed legislation, and advocate within your own organisations for policies that benefit our sector and, ultimately, all New Zealanders.
The time for passive observation has passed. The decisions made now will shape New Zealand’s financial services landscape for years to come. Let’s ensure we’re active participants in writing that future.
Jason Roberts is Executive Director of FinTechNZ. Connect with him on LinkedIn or email jason@fintechnz.org.nz
