Open Banking will be expanded into business banking channels, a move the Government says will unlock new financial tools and improve productivity for small and medium-sized enterprises.
Commerce and Consumer Affairs Minister Scott Simpson and Small Business and Manufacturing Minister Chris Penk announced the change, which will allow businesses to securely share their banking data with approved third-party providers.
The shift is expected to enable faster loan comparisons, automated accounting systems, and improved cashflow management tools. Simpson said the initiative is designed to reduce administrative burdens and allow business owners to focus more on growth and customer service, noting that similar systems in the United Kingdom have saved businesses around 150 hours annually on routine tasks.
The expansion builds on the regulated Open Banking framework introduced in December 2025, which has already seen major banks roll out services and fintech companies begin offering new products to consumers.
Under the new approach, smaller businesses are expected to benefit most, particularly those facing challenges accessing finance due to limited credit histories or collateral. Penk said Open Banking would give lenders a clearer view of real-time business performance while also helping owners manage cashflow by consolidating accounts across institutions. He added that automation of invoicing, reconciliation, and financial tracking could significantly reduce errors and free up time for business operations.
Cabinet has confirmed that large corporates and institutions will not be required to adopt regulated Open Banking, citing limited demand in international markets. The Government maintains the broader rollout will increase competition, improve efficiency, and provide businesses with greater choice in financial services, positioning the reform as a key step in reducing compliance burdens and strengthening productivity across the sector.
Image credit: Getty Images
So, the corporate state has given a pass the large corporates and institutions (corporate mates). I wonder why they don’t want to securely share their banking data with approved third-party providers?
“…faster loan comparisons, automated accounting systems, and improved cashflow management tools…”
will all enable much better surveillance and profile building – it’s not there for your convenience, it’s there for the bank’s convenience.
Should’ve been published on 1st of April.