Open banking is changing the way Kiwis manage their money. Instead of your financial data being locked inside your bank, open banking allows you to securely share your information with trusted apps like BudgetBuddie so you can see everything in one place.
But open banking in New Zealand hasn’t always looked the way it does today. It has evolved and it’s continuing to evolve under a new regulated framework that launched in December 2025.
This guide will walk you through it in simple terms.
What is Open Banking?
Open banking is software that enables consumers to seamlessly exchange data between their bank and trusted third-parties like BudgetBuddie. At its core, it’s about putting you in the driver's seat of your information. You decide whether to connect your bank account, what information is shared, and when to disconnect. Nothing happens without your permission.
In simple terms, open banking is like issuing a visitor pass to your house instead of handing over your house keys. You’re not giving someone your password or full access to your accounts. You’re giving limited, read-only access for a specific purpose. That access can be revoked at any time.
When you connect your bank through an app like BudgetBuddie via open banking, you’re redirected to your bank’s app or official login page. You log in directly with your bank, approve the connection, and your bank securely shares the approved data via an API. You never give BudgetBuddie or Akahu your password.
That’s open banking in action.
The History of Open Banking in New Zealand
New Zealand was early to open banking innovation, but it started with secure alternative methods at the beginning to handle connections. Companies began building tools that allowed consumers to connect their bank accounts to budgeting apps, accounting software, and lending platforms by using Akahu.
In those early days, there wasn’t a formal regulatory framework in place. Technology providers like Akahu developed secure connection methods that allowed customers to access and share their own financial data.
In March 2025, the Customer and Product Data Act was passed into law. This created a structured framework for regulated data sharing across designated sectors, including banking. From December 2025, major New Zealand banks (ANZ, ASB, BNZ & Westpac) were required to provide regulated account information and payment initiation APIs to accredited third parties.
What that means in practice is clearer rules, stronger security standards, and a consistent operating environment for open banking in New Zealand.
We’re now moving from an innovative early phase into a formal, regulated system.
How Does BudgetBuddie & Akahu Handle Connections?
BudgetBuddie integrates with Akahu, New Zealand’s leading open banking intermediary.
Akahu provides the infrastructure layer that connects apps like BudgetBuddie to banks and financial providers. Instead of BudgetBuddie building and maintaining separate integrations with every single bank, we connect through Akahu’s unified system. They handle authentication flows, consent management, API upgrades, and the secure movement of data. This allows us to focus on what matters most, helping you understand, manage, and improve your money.
Because New Zealand is transitioning into regulated open banking, there are currently two types of connections that may be used, depending on the bank or provider. When a bank offers official regulated open banking APIs, you log in directly with your bank and grant access under that regulated framework. There’s no credential sharing, and the connection operates under the standards set out in the new system.
However, not every financial institution has official open banking APIs available yet. In those cases, Akahu uses a secure token-based connection method. It’s important to be clear here: Akahu does not store your banking credentials and does not screen scrape your online banking.
Instead, when you authorise a connection, a secure long-lived access token is generated. The easiest way to think about this is like a digital access card. Rather than giving someone your password (which would be like giving them your house key), your bank issues a limited-access card. That card allows approved, read-only access to certain data and can be revoked at any time. Your password is never stored.
This token system allows secure, ongoing access without logging in as you or imitating your online banking session. Over time, as more banks fully implement regulated APIs, more connections will migrate to the official open banking framework
The system continues to improve as the infrastructure matures.
Why Open Banking Benefits You
The real value of open banking isn’t technical. It’s practical. It gives you a secure, single, accurate view of your finances instead of forcing you to jump between apps and accounts. Your transactions sync automatically, your balances stay up to date.
Security is stronger because you authenticate directly with your bank and can revoke access whenever you choose. There’s no password sharing, and all data is encrypted in transit.
Open banking also enables faster payments. Under the regulated system, payment initiation APIs allow payments to be processed immediately with confirmation returned within seconds. That opens the door to smarter financial automation and seamless in-app experiences.
Most importantly, it gives you clarity. When your financial data is accurate and up to date, you can make better decisions, track progress toward your goals, and stay in control of your money.
Final Thoughts
Open banking in New Zealand has moved from early innovation into a regulated, future-ready framework. With the regulated system becoming operational from December 2025, we’re entering a new era of secure and standardised financial data sharing.
Through our integration with Akahu, BudgetBuddie provides a secure way to connect your finances, whether through official regulated APIs or secure token-based integrations where official APIs are still rolling out.
Disclaimer
This blog or any other information provided by BudgetBuddie is not financial advice. If you're needing financial advice please get in touch with a licensed financial advisor or professional.
