-Mark Devlin, Managing Director, Impact PR

New Zealand’s manufacturing sector has long faced challenges in securing financial services that are both efficient and cost-effective. The dominance of a few major banks has resulted in high fees, outdated systems and a lack of tailored solutions for businesses looking to scale.

However, recent regulatory changes by the Reserve Bank of New Zealand (RBNZ) may mark the beginning of a new era – one where increased banking competition and AI-driven financial services could significantly benefit manufacturers.

The RBNZ’s decision to allow greater access to New Zealand’s Exchange Settlement Account System (ESAS) is a critical step forward. ESAS is the backbone of the country’s financial transaction system, enabling real-time settlements between banks.

Previously, only major banks had direct access, forcing smaller financial players to go through them as intermediaries. This restriction has stifled competition and innovation in the banking sector for years.

Now, with non-bank financial institutions permitted to participate directly, manufacturers may soon see more competitive financing options, faster payment processing, and AI-driven banking solutions tailored to their needs.

Fintech innovation: A game changer for manufacturers

The impact of these reforms extends beyond just banking competition. Fintech companies like Emerge are poised to introduce AI-driven financial tools that could streamline business operations for manufacturers.

Emerge co-founder Jovan Pavlicevic says that traditional banking services have failed to keep pace with the needs of modern businesses.

“It’s staggering that in 2025, opening a business bank account in New Zealand can still take months.

“Many of our customers report waiting three to four months just to get an account set up. Meanwhile, international fintech solutions are providing instant onboarding, real-time fraud prevention, and AI-driven financial insights,” he says.

Emerge is working towards embedding artificial intelligence at the core of its banking platform, offering manufacturers real-time financial tracking, automated reconciliation, and proactive fraud detection.

AI-powered banking could also optimise cash flow management – an issue that continues to be a pain point for manufacturers dealing with supply chain disruptions and fluctuating demand.

Levelling the playing field

Manufacturers are among those who stand to benefit the most from increased banking competition.

The sector is heavily reliant on access to working capital, trade finance, and seamless international transactions. Under the current system, high banking fees and slow processing times add unnecessary costs to doing business.

Pavlicevic highlights how manufacturers will benefit from fintech-driven solutions.

“Our system allows AI-powered facial recognition for secure transactions, while automated fraud prevention tools analyse transaction histories to flag unusual spending patterns before they become an issue. These innovations could save businesses significant time and money,” he says.

AI-driven banking models could also democratise financial insights. Previously, businesses needed a team of financial experts to manage cash flow, reconcile transactions, and detect anomalies. With AI, manufacturers will have real-time access to insights that allow them to make better financial decisions without requiring an in-house finance team.

The road ahead

Despite these advances, significant regulatory and financial barriers remain for challenger banks. In the UK, fintechs can launch a banking entity with just £1 million in capital. In New Zealand, they need between $30 million and $50 million just to enter the conversation with regulators. Pavlicevic describes this as an “impenetrable wall” for new competition.

However, if New Zealand can overcome these regulatory constraints, the potential for AI-driven banking innovation is immense. AI could reduce reconciliation time, automate expense tracking, and improve financial decision-making for manufacturers.

With open banking and ESAS reform, the manufacturing sector may finally gain access to the efficient, cost-effective financial services it needs to compete on a global scale.

As the financial landscape shifts, manufacturers should keep a close eye on the rise of fintech solutions. Increased competition in banking could mean lower fees, faster transactions, and smarter financial tools – all of which will play a crucial role in helping New Zealand’s manufacturing sector remain competitive in an increasingly digital economy.