What Is Open Banking and Why Should NZ Care?

You might have heard "open banking" mentioned in the news. Here's what it actually means for New Zealanders. For a deep dive into the platform that powers open banking in NZ, read our Akahu explainer.

The simple version

Open banking lets you share your bank account data with third-party apps, securely, with your permission. Instead of giving an app your bank login (scary), the bank provides a secure API that the app connects to.

Think of it like how you can "Sign in with Google" on websites. Open banking is "Connect your bank" but with proper security and your explicit consent.

How it works in NZ

New Zealand's open banking system is being built through Akahu, which provides secure API connections to nine NZ banks: ANZ, ASB, BNZ, Kiwibank, Westpac, TSB, The Co-operative Bank, SBS Bank and Heartland.

When you connect a bank in an app like Steady:

1. You're redirected to Akahu's secure login page
2. You log into your bank using your own credentials (the app never sees them)
3. You choose what data to share (accounts, transactions)
4. The bank sends your data to the app via secure API
5. You can revoke access anytime

What you get from it

Everything in one place

If you have accounts at ANZ and ASB, plus KiwiSaver with Simplicity, and a Sharesies investment account, open banking lets one app see all of it. Your total net worth, spending from all accounts, and a complete financial picture.

Automatic categorisation

Instead of manually tracking spending, your transactions flow in automatically and get categorised. Steady uses NZ-specific pattern matching (it knows Woolworths = groceries, Z Energy = fuel) plus AI for everything else.

Smarter tools

With access to your real data, apps can provide genuinely useful features:

• "Safe-to-spend" calculations based on actual balances
• Bill reminders based on real recurring payments
• Savings goal tracking connected to actual account balances
• AI chat that knows your financial situation

Is it safe?

This is the most common question. The short answer: yes, it's safer than the alternative.

Before open banking, if you wanted to use a finance app with your bank data, you had to share your bank login credentials. That's terrible for security.

With open banking via Akahu:

• Your bank credentials are never shared with the app
• Data is encrypted in transit and at rest
• You control exactly what data is shared
• You can revoke access instantly
• Akahu is an accredited requestor in NZ's regulated open banking system

What's coming next

NZ's open banking system is still maturing. In 2026, the focus is on read access (viewing accounts and transactions). Write access (making payments via third-party apps) is on the roadmap but not yet widely available.

The government and banks are working on a regulated framework that will make open banking a standard part of the NZ financial system, similar to what the UK and Australia have already implemented.

Can an app take money out of my account with open banking?

No. What is live in New Zealand today is read access: an app can see accounts and transactions, and nothing else.

Moving money is a separate permission, still being rolled out here, and it is not something Steady does. The consent screen is the honest test. It names the accounts and the data, and if it does not mention payments, payments are not on the table.

How often does my bank data update?

At most twice a day. Open banking in New Zealand is not a live feed, and nothing on the roadmap changes that.

So a coffee you bought an hour ago may not have arrived yet, and seeing it in your banking app first is normal rather than a fault. Akahu refreshes on a schedule, and every app built on it inherits that schedule.

Worth knowing before you pick a tool. Any app promising instant sync is describing something the connection cannot do.

How do I stop sharing my bank data?

Two ways, and both take effect straight away.

Revoke it inside the app you connected, which in Steady is one tap per bank in settings. Or revoke it at the source through Akahu, which cuts off every app at once.

Consent is per connection, so disconnecting one bank leaves the others running. You can check what you have shared at any time.

Which New Zealand banks does open banking cover?

Nine, as things stand: ANZ, ASB, BNZ, Kiwibank, Westpac, TSB, The Co-operative Bank, SBS Bank and Heartland.

That is the overwhelming majority of everyday accounts in the country. Investment platforms are a different story, and a more limited one, so read our investment tracking guide before you count on those.

If your bank is not on the list, the fallback is a downloaded statement rather than a connection.

The bottom line

Open banking gives you control of your financial data. Instead of each bank being a walled garden, you can use the best budgeting apps available, regardless of which bank you're with. It's more secure than the old way, and it's only going to get better. Learn more about how Steady works and data security.