New Zealand must connect capital with growth as Asia Pacific becomes financial services powerhouse

Auckland, 1 September 2026 – Asia Pacific's financial services industry is on track to generate up to US$4.8 trillion in economic value by 2035, overtaking the United States and reinforcing the region's growing influence on the future of global finance.

According to a new Deloitte report, From growth to advantage: Competing for the future of financial services in Asia Pacific, the region's economy is expected to expand to almost US$54 trillion by 2030, creating significant opportunities for financial institutions across the region, including New Zealand.

For New Zealand, the report highlights both opportunities and challenges as capital, talent, technology and regulation increasingly shape the future of financial services.

"Asia Pacific's growth presents significant opportunities for New Zealand's financial services sector," says Deloitte New Zealand Partner and Financial Services Leader Catherine Law.

"As capital, talent and innovation increasingly flow through the region, organisations that strengthen customer relationships, invest in technology and engage proactively with regulatory change will be best positioned to succeed."

"The region has the scale, savings and innovation to shape the future of finance. For New Zealand, the challenge is ensuring we’re well positioned to connect capital with growth opportunities, remain relevant to customers and build the capabilities needed to compete in a rapidly changing market."

Four battlegrounds will define New Zealand's future

The report identifies four competitive battlegrounds that will shape the future of financial services across Asia Pacific and influence how New Zealand competes in the decade ahead.

1. Shaping the new financial system

One of the biggest opportunities for New Zealand is improving how capital is mobilised and invested. New Zealand's market-based financial depth sits at just 33% of GDP, low relative to both Asia Pacific peers and other high-income economies. While KiwiSaver is growing into a meaningful funding source and New Zealand continues to attract inbound investment, the country faces increasing investment needs to lift productivity, fund infrastructure and support high-growth businesses.

"New Zealand's capital-light economy is running up against growing investment needs," says Law.

"Capital exists, but no single lever will close the gap. Continued growth will require supportive policy settings, customers directing more savings toward productive investment, and financial institutions developing new ways to connect capital with opportunity."

2. Winning the customer

Demographic shifts, wealth creation and digital adoption are reshaping financial services demand across Asia Pacific, creating new opportunities and increasing competition for customer relationships.

While New Zealand's financial services market remains concentrated among a small number of long-established institutions, a growing range of share-trading platforms, KiwiSaver providers and digital-first challengers are expanding consumer choice and driving innovation in parts of the market.

"New Zealand's established institutions continue to benefit from strong customer trust and scale, while newer entrants are bringing greater choice and innovation for consumers," says Law.

"New Zealand has a strong history of financial innovation, but unlike parts of Asia where digital banks and super apps are creating entirely new financial ecosystems, we have not seen the same level of disruption."

"The question now is how New Zealand keeps pace, and how customers benefit from the next generation of financial products, platforms and experiences."

3. Navigating the AI inflection

The report highlights that while many financial institutions are investing in AI, most are currently focused on productivity gains rather than fundamental business transformation.

Deloitte says future competitive advantage will come from redesigning business models, operating models and customer experiences around AI, rather than simply applying AI to existing processes.

"New Zealand financial institutions may be underestimating the scale of transformation required to unlock AI's value," says Law.

"We now need to rethink how organisations operate, where human judgement matters most and how new value is created."

"Talent may be New Zealand's biggest constraint. Organisations need people who can connect business, technology, data, risk and governance capabilities, and those skills are already in short supply."

"At the same time, accountability for AI can’t be outsourced. Even where institutions adopt global AI platforms, New Zealand organisations still need robust local oversight, assurance and governance for decisions that affect customers."

4. Engaging the rule makers

The report finds that regulation is becoming a more active driver of competition, innovation and market structure across the region.

In New Zealand, regulatory settings are increasingly influencing customer outcomes and competitive advantage. Financial institutions that build trusted relationships with regulators, contribute constructively to policy development and anticipate regulatory change will be better positioned to shape market evolution and strengthen customer trust.

This is particularly relevant as the sector navigates the future of retail payments, financial crime reforms, AI governance, open banking and continuing efforts to improve competition and consumer outcomes.

"Organisations that engage constructively with regulators and help shape practical solutions will be better positioned to innovate, build trust and compete effectively in the years ahead," says Law.

Moving forward with confidence

The report concludes that there is no single formula for success in an increasingly competitive and interconnected financial services market. However, four strategic priorities stand out for New Zealand institutions:

1. Connecting more capital with productive investment opportunities to support economic growth.
2. Strengthening customer relevance as expectations and competitive dynamics evolve.
3. Treating AI as a strategic transformation priority, not simply a productivity tool.
4. Engaging proactively with regulators to help shape the future operating environment.

"The winners will be those that set a clear direction and execute with confidence," says Law.

"Organisations that can connect capital with growth opportunities, deepen customer relevance, build differentiated AI-enabled capabilities and engage constructively with regulators will be best placed to compete in the decade ahead."

The full report, From growth to advantage: Competing for the future of financial services in Asia Pacific, is now available.

ENDS