Hon Andrew Bayly
Minister of Commerce and Consumer Affairs

The launch of a bespoke pilot programme for financial technology companies will help boost competition for Kiwi consumers and improve choice in the financial and banking sectors, Commerce and Consumer Affairs Minister Andrew Bayly says.

“The Government is relentlessly focused on improving competition so we can lift productivity and improve outcomes for Kiwis,” Mr Bayly says.

“Financial technology companies – or fintechs – offer huge potential for Kiwis. Fintechs compete with traditional banks by providing customers with choice about how to manage money, make investments, transfer payments and do business.

“Fintechs also drive innovation and are exactly the kind of skilled, high-value, high-wage companies that we want to see thrive in New Zealand.

“Entrepreneurial Kiwis have already developed a number of world-leading fintech companies, but we need to multiply that success several times over. Our ambition is not to have one or two unicorns but a scalable fintech industry that employs Kiwis and exports products and services around the world.

“However, fintechs often cite cumbersome regulations as a barrier.

“We have listened to this feedback and the Financial Markets Authority (FMA) and FinTech NZ have partnered to develop a testing ground where fintechs can experiment in a controlled environment before doing a full commercial launch.

“These environments are known as ‘regulatory sandboxes’ and help businesses to tweak products so they are compliant with regulations before launch.

“The regulatory sandbox will enable fintechs to save time, reduce costs and ensure greater consumer protection. It will also help the FMA to identify unnecessary red tape that poses an industry-wide barrier.

“The regulatory sandbox pilot offers an exciting opportunity for the Government to work with industry to support the growth of a sophisticated, world-leading fintech industry.

“In time, such an industry would mean more choice, better services and greater financial freedom for hardworking Kiwis.”

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