Kiwibank NZ Update: Service Outage, Privacy Changes, and Open Banking Launch

It has been a busy 24 hours for Kiwibank. New Zealand’s state-owned bank is hitting the headlines as it navigates technical hurdles while rolling out the most significant digital upgrades in its history.

1. April 15 Service Outage: What’s Happening?

Since yesterday, many Kiwis have been left frustrated as the Kiwibank App and Internet Banking experienced intermittent access issues.

• The Current Status: While Kiwibank has confirmed they are working on a fix, the outage has sparked a wave of social media complaints from customers unable to check balances or make transfers.

   

• What Still Works: The bank has confirmed that EFTPOS cards, ATMs, Apple Pay, and Google Pay remain fully operational. If you need to pay for groceries or fuel today, your physical cards should work as normal.

   

2. Privacy Policy Update (Effective April 27)

Kiwibank has officially published its updated Privacy Policy this week. These changes are designed to provide greater transparency ahead of the new Open Banking regulations.

• Fraud Protection: Clearer descriptions of how your data is used to detect and prevent AI-driven scams.

• Data Sharing: More details on how you can authorize third-party providers (like budgeting apps) to access your info.

• Action Required: You don’t need to do anything, but it’s worth reviewing the new terms if you use third-party financial tools.

3. Open Banking is Coming: May 2026

Kiwibank has confirmed that Open Banking will go live next month!

• Fast Payments (May 2026): You will be able to make direct, secure payments for online shopping without needing a credit card.

• Data Sharing (November 2026): Later this year, you’ll be able to share your transaction history with financial advisors or mortgage brokers with a single tap, making mortgage refixing significantly faster.

4. Market Performance & Rates

Despite the technical hiccups, Kiwibank remains a dominant force in the 2026 market. Their latest results show a 12% jump in profit, with their home lending growing 1.6 times faster than the big Australian-owned banks.

• Term Deposits: With the RBNZ holding the OCR at 2.25%, Kiwibank experts suggest now is the time to consider “locking in” longer terms before further cuts expected later this year.

Kiwibank Survival FAQ (April 2026)

Why can’t I log into the Kiwibank App?

The app is currently experiencing technical difficulties. Ensure you have updated to the latest version in the App Store/Google Play. If it still fails, try using a desktop browser or use your physical card for urgent payments.

Is Kiwibank still New Zealand owned?

Yes. Kiwibank remains 100% New Zealand-owned, held by the Crown via Kiwi Group Capital.

Are Kiwibank fees increasing?

Actually, the bank has been removing fees. As of April 1, 2026, many business banking and asset finance fees have been reduced or scrapped entirely to help businesses navigate the current high-inflation environment.