Innovation

The financial technology (FinTech) sector continues to evolve rapidly. New technologies and the growth of the data economy are driving innovation and are reshaping how financial products and services are developed, distributed and consumed, opening new opportunities for financial services.

Our aim is to ensure that the New Zealand regulatory system facilitates innovation that improves outcomes for consumers and increases the efficiency and competitiveness of the financial system. 

How to know when what you are building falls under FMA’s scope

You might be a fintech without realising it. If your startup helps people move, manage, or make money more easily, you are operating in financial technology. That includes not only banks and payment apps, but also tools that streamline transactions, automate billing, manage subscriptions, split payments, or connect financial data in smarter ways. Whether your core focus is education, health, logistics, or sustainability - if finance or payments are part of how your users engage or get value, you’re likely building a fintech. 

What to expect when you get in touch with the FMA on your Fintech Offerings

Our Innovation team will aim to come back to you within 7 business days of receiving your request. Where appropriate we will invite you to an online or in-person meeting. Depending on the nature of your product or service we may include specialists from other areas within the FMA or from other regulators such as the Reserve Bank of New Zealand or The Department of Internal Affairs.

This meeting will provide you an opportunity to share more details of the product or service you are developing and ask for information in relation to specific regulatory areas. FMA staff will be able to talk through the various gateways and discuss our published guidance to help you understand key regulatory areas you should be considering as you develop your product. If you have legal representation, we encourage you to invite them to the meeting. It is important to note that the FMA does not provide legal advice or statutory interpretation, and we do not offer endorsement for any fintech businesses. If you need advice tailored to your business, you will need to consult a qualified legal or professional adviser. 

Preparing for the meeting on your fintech offerings

To make the most of this meeting we recommend preparing a short presentation that covers the following areas. If you have an existing presentation or pitch deck, please use that, we understand that if you are very early in the development of the idea you may not have answers to all of these questions, that’s fine.

• Solution - What is the service/product are you developing?  
• The Problem - What problem are you solving?   
• Customers - Who are the target customer, wholesale, retail or both?
• Innovation - Is this a completely new offering or a better version of something that already exists?    
• The Business Model - How does your solution generate revenue? What fees apply to customers?   
• Operational - How does information, data and money flow (e.g., transaction processing, funds management, custody, buying and selling)?
• Technical  - What are the main technical building blocks of your solution? How does the high-level technical architecture including the use of emerging technologies such as Generative AI, Blockchain, Stable Coins and Tokenisation look like?  
• People - What roles do key people hold in your model?   
• Regulation - What is your understanding of how New Zealand financial regulation rules apply to your model? What areas of regulation do you need guidance on?   
• Roadmap - What are the main deliverables of your roadmap over the next few years?

If possible, kindly provide or share a copy of the presentation with us either during the meeting or in advance.

We understand that developing new financial services and meeting regulatory compliance is not straight forward. Therefore, we welcome ongoing discussion if further clarification is needed. 

Pilot Regulatory Sandbox

As part of our commitment to support financial services innovation, the FMA launched a pilot “regulatory sandbox”.  A regulatory sandbox is a concept which allows firms – from start-ups to established licensed financial market participants – to test innovative products, services or business models.  This initiative is currently operating as a pilot programme, and further updates and information will be provided in due course.

Additional details can be found at Pilot Regulatory Sandbox