The Bank of New Zealand has announced it has become the first bank in the country to implement a critical API standard necessary for the adoption of the country’s emerging Consumer Data Right (CDR) regime.

The recently enacted Account Information API v2.1 standard,  developed by the country’s payments standards authority Payments NZ, enables registered third parties, with a customer’s consent, to access data relating to a customer’s account held with an API provider, such as a bank.

BNZ’s executive of customer products and services Karna Luke recognised the API v2.1 standard as the “engine room of open data”.

“It’s the piece of the tech puzzle that means our customers have full control over what data they share, who they share it with and importantly, it gives them control to stop sharing their data too,” Luke said.

Payments NZ, also the key standards setter for the country’s emerging Open Banking system, set New Zealand’s major banks the task of implementing Account Information API v2.1 standards by November this year.

“That we’ve been able to reach this milestone three months ahead of the deadline reflects the commitment that BNZ has made to support the implementation of open banking,” Luke said.

BNZ boasts that it also implemented the API Payment Initiation standard last year, well ahead of the mandated big four bank (ANZ, ASB, BNZ, and Westpac NZ) adoption date of 30 May 2024. The API Payment Initiation standard enables direct account payments through third-party apps.

According to Luke, more than 250,000 BNZ customers are already benefitting from the API Payments Initiation standard adoption, including secure API connections to Xero, Volley, and Blinkpay.

“Being the first bank in New Zealand to deliver this API demonstrates our focus on helping drive the future of open banking in New Zealand,” Luke said.

“We’re excited to see more fintechs and developers join those we’re already working with to leverage this technology to create innovative solutions that will benefit our customers and the country.”

He added: “It’s also important to remember that banking services are just the beginning.”

The Customer and Product Data Bill, currently before Parliament, will establish a Consumer Data Right (CDR) in New Zealand, enabling open data sharing across multiple sectors.