Fintech Support to Enhance Market Competition
A pilot programme that will help financial technology (fintech) firms shake up competition in the financial and banking sectors is now underway, says Commerce and Consumer Affairs Minister Scott Simpson.
“Our Government is focused on improving competition in the areas that matter most to Kiwis. The financial and banking sectors are among the most crucial to our everyday lives and our economic growth – however, they are often criticised as being among the most regulated and, some say, least competitive,” says Mr Simpson.
“We have heard these concerns from the industry and have taken them seriously. I am pleased that the Financial Markets Authority has now announced the six firms that will take part in its pilot ‘regulatory sandbox’ programme, which was announced late last year.
“The sandbox is a testing ground where fintechs can experiment with new products and services in a controlled environment, ensuring they comply with regulations, before doing a full commercial launch.
“The benefits of this programme reach all corners of our economy. For consumers, it opens the door wide for new and innovative solutions that will challenge traditional banks and boost competition, providing more choices about how people manage their money, investments, and day-to-day transactions.
“For fintechs, it means having the freedom and guidance to develop new products and services that will not only benefit customers but also help them supercharge New Zealand’s economic growth. I expect the sandbox will enable firms to save time, reduce costs, and bring innovative products to market sooner.
“Fintechs are exactly the kind of high-value companies that we want to see thrive in New Zealand, but regulatory barriers have prevented them from competing on a level playing field. That’s why our Government is identifying and removing these barriers to support a thriving, scalable fintech industry in New Zealand.
“Our Government also recognises the potential of fintechs to disrupt New Zealand’s financial services sector, increasing competition and choice for Kiwis. With open banking now on track to be operational in New Zealand by the end of the year, this is another action we are taking to help further unlock that potential.
“I look forward to seeing how the firms make use of the sandbox. I encourage them to be bold and push the boundaries as they develop innovative solutions that will bring more choice and better services to consumers.”
Notes to editors:
The firms taking part in the pilot are:
For further details on the regulatory sandbox and the firms participating in the pilot, please visit: https://www.fma.govt.nz/business/focus-areas/innovation/.
It is anticipated the firms will operate within the terms of the sandbox for a period of between 12 and 24 months. Following the pilot, the Financial Markets Authority will make a decision on whether to make the programme permanent.
https://www.beehive.govt.nz/release/supporting-fintechs-boost-competition