In this follow-up episode Special Counsel, Sonya Forbes and Senior Associate, Suzy McMillan both from MinterEllisonRuddWatts’ Corporate and Commercial team, continue their discussion on the status of consumer data rights in New Zealand.
In their last episode, Sonya and Suzy provided an insightful overview of the recently released Customer and Product Data Bill. In this episode they focus on the evolving open banking ecosystem in New Zealand, examining how it is being shaped by both regulatory and industry-led initiatives.
[01:14] Suzy begins by recapping that New Zealand is in the process of developing its own statutory framework for consumer data rights, through the Customer and Product Data Bill (Bill). She notes that the Bill is currently progressing through parliament, but its finalisation and implementation as law could take some time.
[01:45] Sonya discusses what is occurring in the marketplace in the meantime, noting that implementation of a consumer data right has begun in the banking sector, on a voluntary, industry-led, basis with “open banking”. She explains the concept of open banking and how it works in practice.
[03:45] Sonya talks through the main open banking industry-led initiative; the development of Application Programming Interfaces (API) and API standards to facilitate data and payment sharing.
[04:25] Sonya then discusses the role of Payments NZ’s involvement in developing API standards and the Minimum Open Banking Implementation Plan, which New Zealand’s five largest banks (ANZ, BNZ, ASB, Westpac and Kiwibank) are expected to comply with by certain specified dates.
[05:52] Suzy and Sonya consider the challenges fintech’s face when trying to integrate with banks using APIs, in the absence of regulation. They explain that due diligence and time-consuming bilateral agreements are needed to support data sharing, but that the process will be simplified through standards and regulations under the Bill once it is passed into law.
[11:20] Sonya considers how the Commerce Commission has been involved in supporting open banking, noting the importance of three key decisions it has released this year. She discusses with Suzy the interplay between the Commerce Commission and Ministry of Business, Industry and Employment (MBIE) in the development of a consumer data right and the lessons they’ve drawn from overseas experiences.
[17:16] Sonya and Suzy lastly discuss MBIE’s consultation process on designations for both the banking and electricity sectors, noting the submission closing date of 10 October 2024.
Information in this episode is accurate as at the date of recording, 9 September 2024.
Please contact Sonya Forbes or our Corporate and Commercial team if you need legal advice and guidance on any of the topics discussed in the episode.
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Additional resources
Consumer data rights: An overview of the Customer and Product Data Bill
Parliament introduces new Customer and Product Data Bill
Commerce Commission publishes its final report on market study in the personal banking sector
Consultation on designating regulations under the Customer and Product Data Bill
