Open banking meets talent: a golden opportunity
The convergence of two crucial trends is creating a unique opportunity for startups and established enterprises. Open banking, with its potential to revolutionise customer experiences, and the availability of talent have joined to provide blue water for innovation and growth in Aotearoa New Zealand.
Open Banking: The Catalyst for Change
This year sees Payment NZ’s open banking plan milestones come into view. If New Zealand's banks can successfully implement the Payment Initiation and Account Information plans, it will unlock a wealth of possibilities for new digital products.
The Payment Initiation plan will allow New Zealand consumers and businesses access to digital payment products that have taken strong hold in international markets. We hope our small but adaptive market will prove a fertile ground for innovation that goes beyond what we’ve seen internationally.
The Account Information plan is poised to break down the barriers that have traditionally separated fintech products from conventional banking services. This could allow consumers to seamlessly integrate new fintech products with their existing ones, creating a holistic financial ecosystem. It also holds the promise of simplifying processes, including loan origination and customer onboarding, making financial interactions more user-friendly.
Talent: The Game-Changer
While the potential of open banking is undeniable, actually realising that potential through new experiences and digital products hinges on one critical factor: talent. In recent years, attracting and retaining top-tier product, design, and engineering talent has been a formidable challenge. The allure of American and Australian startups has drawn many talented individuals away from working for New Zealand firms, leaving local fintech startups and enterprises grappling with talent shortages.
The tides, however, are beginning to shift. As the market corrects and some overseas companies curtail their hiring in New Zealand, a window of opportunity is opening for local firms. This is the moment to capitalise on the wealth of talent that resides within the country's borders.
The Right Culture Matters
This talent won’t automatically return to working for an established enterprise. The top quality engineers and designers who can build game changing fintechs are used to startup and scale-up environments where they can operate at high velocity and with high trust. New Zealand firms who adopt the same practices have the opportunity to attract high quality talent seeking to work on products to be adopted in their home market. The key is creating environments where empowered teams can deliver their best work, using modern technology, delivering digital products that will have real impact.
A Promising Future
In this evolving landscape, firms that can harness the capabilities of open banking while fostering entrepreneurial design and engineering talent will emerge as the frontrunners. They are the ones positioned to lead New Zealand's fintech sector into a future marked by innovation and transformation. We’re looking forward to working alongside forward thinking businesses who are keen to seize upon this opportunity.
By Toby Cox, Partner & CTO, Paloma
Be part of the fintech revolution for good. Join us at the FinTechNZ Hui Taumata on 27 February in Auckland.