February 29, 2024

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New Zealand’s Digital Economy is Ready for Open Finance

Open finance is foreign to many New Zealanders. Many are not aware of its benefits, much less its existence. However, a Financial Technology (FinTech) study revealed open finance is tipped to become the standard for consumers’ financial welfare and empowerment.

Government-backed non-profit industry group FinTechNZ affirms such developments. Its Executive Director Jason Roberts says the huge opportunities for Kiwi businesses and consumers simply can’t be ignored; with open finance set to increase competition and innovation across many sectors.

We are in the perfect position, with open finance in its infancy, to leverage this technology to help contribute to reducing financial exclusion and lay down the foundations for a strong digital economy.

– Jason Roberts, Executive Director, FinTechNZ

The benefits are enormous. Open finance, if done right, provides an enormous opportunity to address inequities, both now and in the foreseeable future, helping Kiwis better manage their finances, Roberts affirmed.

Moreover, he expounded that emerging FinTech like open finance is redefining the way we borrow, lend, save, spend, store and transfer money. Disruptive technologies are revolutionising traditional financial services, creating new services for consumers and opportunities for start-up entrepreneurs and corporate innovators, he added.

FinTechNZ, part of the NZ Tech Alliance, is at the forefront of all of this. The not-for-profit group brings together New Zealand financial service providers, tech innovators, investor groups, government regulators and financial educators.

Simply put, open finance is FinTech giving individuals and business entities more power when it comes to handling their finances. It means they will be able to access and use any financial data supplied by them or created on their behalf by their provider, be that a bank, insurance company, utility or any firm that holds their financial transaction data.

With open finance, account holders will have:

  • Better access to cheaper and more holistic debt advice
  • Better access to product recommendations
  • increased engagement with their financial situation.

These are just three ways in which Personal Finance Management platforms (PFM) could evolve in open finance. To date, countries like the U.S. and Brazil have been systematically applying open banking concepts.

Wellington is well aware of these developments. Already, the open finance research report will be launched by David Clark, the Digital Economy Minister David Clark. However, the technology is not as popular as prime movers would hope. There is a low level of awareness and understanding in New Zealand about open finance and the benefits it offers. The research shows this needs to be improved.

The good news is the private sector is leading the way. A handful of Aotearoa’s most successful international FinTech companies are already leading the way, the research report detailed.As with the case of any emerging ICT, open finance can only thrive when regulation allows it to. It’s critically important, therefore, that New Zealand’s FinTech ecosystem is set on a foundation of trust, clear rules around liability, terms of access and privacy, technical standards and collaboration with the government.

New Zealand’s digital transformation is evolving at seemingly breakneck speeds. That Wellington invested in a global marketing campaign to highlight its technology sector is proof of that. It definitely knows how much its economy can be moved with digital adoption.

Still, it has to move with a lot of caution. While the benefits of open banking can be manifold, the technology could be the target of unscrupulous entities willing to take advantage of new technology. The recent case of cyberattacks in the health sector during the pandemic is a reminder of that, as reported on OpenGov Asia.

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

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SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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