Bank-owned Payments NZ hires PwC to undertake governance review after government calls for better support for new entrants

Payments NZ has hired PwC to review its role, mandate and governance arrangements. 

This follows the Government accepting a recommendation from the Finance and Expenditure Committee's inquiry into banking competition that the bank-owned Payments NZ should improve its governance structure to better support new entrants like fintechs.

Formed in 2010 and owned by eight banks, Payments NZ was primarily designed as a standards and rule-making body for clearing systems. However, it also has a role in coordinating industry activity and modernisation efforts, which it has done for the likes of open banking.

The Government passed the Customer and Product Data Act last year, setting out the regulatory framework for the Consumer Data Right to support open banking. This followed criticism that New Zealand banks had been dragging their heels on open banking.

Payments NZ is owned by ANZ NZ, Westpac NZ, BNZ, ASB, Kiwibank, TSB, HSBC and Citibank.

Payments NZ Chairman Michael Ahie says the review is an important opportunity to assess whether the organisation's governance arrangements remain fit for purpose as the payments ecosystem continues changing. Ahie says the Board is keeping an open mind on the review, with no outcomes predetermined.

The Terms of Reference aren't being published. The review is considering:

• Whether Payments NZ's governance arrangements remain fit for purpose.
• The effectiveness of its governance structures, decision-making processes, accountability mechanisms and representation arrangements.
• The alignment between its governance framework and role within the payments ecosystem.
• Relevant good practice and comparable governance models in New Zealand and internationally.
• Any findings and recommendations arising from the review.

"PwC will undertake its own assessment, engage broadly across the ecosystem and develop independent findings and recommendations for the Board," says Ahie,

"Independence sits at the heart of this review. This is not about validating the status quo. It is an opportunity to take an objective look at our role, governance arrangements and whether they will continue to support the future needs of Aotearoa New Zealand's payments ecosystem."

"The review will also consider how governance arrangements support key system outcomes including safety, resilience, efficiency, openness, interoperability and innovation," Ahie says.

He says PwC's appointment follows shareholder support for the review and a competitive procurement process. 

"PwC is expected to present its findings and recommendations to the Board by the end of 2026. The Board will consider the recommendations and determine the appropriate approach to communicating the review’s outcomes."