MPs concerned after Dosh turned down for banking licence
Wednesday, 18 February 2026
The co-founder of fintech start-up Dosh, Shane Marsh, told MPs conducting the Parliamentary banking inquiry follow-up on Wednesday that the Reserve Bank had “declined” its application for a banking licence.
Marsh said the Reserve Bank, which issues banking licences, had decided Dosh did not meet the legal definition of a bank.
MPs on the Finance & Expenditure Select Committee appeared surprised at the central bank’s decision, and National MP Ryan Hamilton told Marsh: “They're still working on that bank definition stuff, so hopefully there'll be the opportunity for you to reapply.”
Marsh said the Reserve Bank had decided that to be considered a bank, an organisation must make loans as well as offering other banking services.
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“We see that that is a relatively narrow and restrictive interpretation of the legislation,” he said.
Dosh provides savings and transaction accounts, but the home loans it sells are Westpac loans, and the Reserve Bank did not accept that qualified the fintech as a bank.
The Reserve Bank confirmed Dosh had made an application for a banking licence.
Marsh said Dosh was open to “resubmitting” an application for a banking licence to the Reserve Bank at a later date.
Dosh’s banking services included a link-up with telecoms company One NZ to help its customers save to buy their next mobile phone.
Marsh said the Reserve Bank’s definition of a bank was out of step with other countries where there was a recognition that digital challenger banks developed in stages, often starting with deposit and transaction services, and later moving into lending.
“We've seen that around the world, from the UK with the likes of Monzo and in Australia with the likes of Up Bank, really bringing new digital services, innovation and competition and value to those, countries and markets,” he said.
“Our approach has always been to look at what's working offshore, and how do we bring that to New Zealand to offer better value in a market that, to be honest, has fallen behind, what we're seeing being offered around the world,” he said.
A banking licence was key to growth as it signalled to the market that a company like Dosh was well-regulated and trustworthy, Marsh told MPs.
Parliamentarians have their hopes pinned on digital challenger banks to emerge providing competition to the big, Australian-owned banks, in order to bring better deposit and lending deals for households and businesses.
The committee is conducting a check-in on progress following its inquiry into competition in the banking sector, which concluded 12 months ago with a series of recommendations to reduce the big banks’ oligopoly power.
App-based digital challengers plug into existing banks through systems collectively referred to as open banking, and can provide things like deposit and payment services.
However, in a submission to the Finance & Expenditure Select Committee, the Commerce Commission said there has been “minimal” progress on some fronts by banks, including to collectively develop an accreditation framework and standard terms for partnering between banks and third parties.
This was essential so digital challengers could quickly develop services, instead of having to negotiate with each bank separately.
This was not entirely banks’ fault, however, the commission conceded. There were “outstanding commercial issues” that remained unresolved, it said.
It gave the example of liability in the case of someone being scammed.
Banks are concerned they would be held liable for a scam victim’s losses in the event of one of their customers losing money after making a payment through an open banking app.
The commission said the Ministry of Business, Innovation and Employment was working on the issue.
However, the commission warned MPs that open banking would progress “at the rate of the slowest adopter”.
“This makes it important to pay particular attention to individual banks’ progress, as well as overall industry progress,” it told MPs.
The commission said it had been making clear its expectations for industry in the transition to open banking and was holding Payments NZ, which is owned by the banks and is in charge of developing open banking protocols, to continue to improve its governance structures.
It did however signal some competition improvements from banks, including an enhanced switching service ( www.readytoswitch.nz ) and changes to make it easier for the public and mortgage advisers to compare loans, and identify the best deals.