Soon, New Zealanders will enjoy improved access to open banking, but what exactly is open banking and how will it impact your shopping and business practices?
Open banking refers to a secure and shared financial technology infrastructure that enables the safe transfer of financial information using open APIs (Application Programming Interfaces). It establishes a digital platform for securely exchanging information between registered parties.
With open banking, you can conveniently transmit chunks of financial information to businesses or institutions, making transactions faster and easier to complete.
This represents the future of banking in New Zealand, as the government has implemented a consumer rights framework to support open banking, and major banks have embraced this initiative. Open banking is already operational in the UK and Australia, where it has witnessed significant growth.
One example of an existing open banking product is Online EFTPOS, available through the banking apps of the major four banks. This secure online EFTPOS transaction method is favored by merchants due to its prevention of chargebacks and its low transaction costs compared to credit card payments.
Open banking holds immense potential. It is expected to enable various types of low-cost transactions, reducing costs for businesses and offering consumers more payment options. For instance, a comprehensive online wallet is being developed that could eliminate the need for carrying loyalty cards, identification, and proof of address. This will simplify processes such as loan applications, purchasing alcohol, and utilising new financial products. Open banking also serves as an initial step towards a central digital currency that can be stored in your digital wallet.
Furthermore, open banking is likely to stimulate the creation of more apps and services for businesses. This will provide you with options to manage your finances effectively and derive added value and security from your online accounting tools. For instance, you may be able to make direct payments to suppliers, reducing the risk of invoice fraud.
Considering the vast opportunities open banking presents for the fintech industry, we may not be experts in your specific sector, but we’re more than willing to discuss potential opportunities tailored to your industry or business. Feel free to get in touch with us – we’re eager to hear from you.
Your Outside Team
Need a bit of assistance with your
business? Contact an Outside Accounting team member today and learn more about
our fixed fees. You won’t regret it.
Aside from business consultation, we
are business accountants Wellington
who offer accounting, bookkeeping, payroll services designed to
help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a
call to know more about your needs. We will explain to you how we can improve
your business.
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
As a business owner, reviewing your financial reports each month is essential for maintaining control and steering your business in the right direction. Here are six key reasons why you should prioritize this important task.
Starting your own business is exciting, but handling all the financial details can be overwhelming. Instead of spending your time managing the books, you could focus on growing your business. This is where expert accounting firms like Outside Accounting step in.
Choosing the right accounting software is crucial for your small business, and with so many options available, it can be challenging to decide which one is best. Xero Accounting Software stands out as a popular choice, but what makes it so special? In this article, we’ll explore six key benefits of using Xero for your small business. If you’re looking for a skilled, cost-effective accountant in Wellington to assist with your small business bookkeeping, reach out to the friendly team at Outside Accounting today.
Bookkeeping fraud, including embezzlement and theft from company accounts, can quietly drain your business’s resources for years before being discovered. The consequences can be devastating. This guide will explore how bookkeeping fraud happens and provide five effective strategies to protect your business from it.
Taking control of your small business’s financial operations is a critical step toward long-term success. With accurate financial planning and expert assistance, you can create a roadmap for expansion and growth within your industry. While managing small business finances may seem daunting, following the right steps can make the process both enjoyable and highly profitable.
As a small business owner, keeping a close eye on expenses is essential, and that includes accounting costs. You might wonder if your accountant’s fees are worth it or if you could handle it yourself using online accounting software.
ALL POSTS
NEWSLETTER SUBSCRIPTION