OPEN BANKING IN CANADA:
A Force for Good

On August 4th, 2021, Canada’s Department of Finance Advisory Committee on Open Banking issued its final recommendations report on establishing the path forward for Open Banking in Canada. This report is an important step forward for Canada, providing the much needed roadmap and certainty to push Open Banking forward and enabling a future that will see Canadians and small business owners own their financial data, as well as allow Fintechs and Financial incumbents to build innovative and personalized products and services. 

Open Banking Initiative Canada (OBIC) exists to develop a market-driven open banking framework in Canada that will make consumer empowerment possible in our country. We are a not-for-profit organization gathering great minds in finance, technology and regulation, creating a groundswell that will be a force for good, giving Canadian consumers choice and control over their financial data.

Our mission is to be a single voice for the financial services industry that represents the viewpoints of its key participants: consumers, Fintechs, payment services, banks and industry experts. 

WHAT IS OPEN BANKING?

Open banking is a global movement to empower consumers with control over their financial data. This control gives consumers freedom to share their personal data with third-party companies that can then use that data to provide alternative financial services that make it easier for consumers to move, manage and control their money. This will in turn provide them with greater choice, control and personalized financial services. The concept of open banking is also referenced as Consumer Directed Finance (CDF) in Canada, a suggestion made by the Department of Finance after the first public consultation in January 2019.

Open banking in Canada will be an open and accessible industry of commerce where standards transparently govern an ecosystem of enriched financial data creating a foundation of trust and financial innovation that will evolve while strengthening the diverse fabric of our Canadian economy.

CONSUMERS

Open banking equals more choice, control, security and potential for Canadian consumers and small businesses to be empowered with their finances. 

BANKS

Open banking positions financial institutions to create customer-centric,  highly personalized solutions that will extend their reach and secure market share. 

FINTECHS

Open banking empowers fintechs to build innovative financial services technology using key data about what consumers need, both today and in the future.

GOVERNMENT

Open banking provides governments with a framework in which Canadian values and rights and privacy are safeguarded within a changing digital economy.

EXPERTS

Industry experts play a crucial roll in the open banking roll-out, ensuring a legal framework for consent, transparency and accountability at the forefront.

OBIC’s Manifesto for Open Banking

Open banking is a global movement to empower consumers with control over their financial data. This control gives consumers freedom to share their personal data with third-party companies that can then use that data to provide alternative financial services that make it easier for consumers to move, manage and control their money. This will in turn provide them with greater choice, control and personalized financial services. The concept of open banking is also referenced as Consumer Directed Finance (CDF) in Canada, a suggestion made by the Department of Finance after the first public consultation in January 2019. 

Canadians permit

‘screen scraping’  to access their financial data. This practice, however, is unregulated and exposes their data to serious vulnerability.

%

are extremely concerned

about the safety of their personal data and worry about the protection of their personal privacy.

%

of consumers

report that they feel a lack of control over how their personal information is used by banks, businesses and governments in Canada. 

%

Willing to share

Almost half of Canadians will share personal info with their bank in exchange for better products and services.

Sources:
Report of the Standing Committee on Banking, Trade and Commerce (2019)
“Open Banking: What it Means for You”; Payments Canada (2019)
“Canadian banks need to prepare for open banking now or risk being left behind”; Globe and Mail (2019)

OBIC Open Banking Insights Series
Our series is hosted by OBIC board member Michelle Beyo, moderated by Independent Senator Colin Deacon and focuses on sharing the benefits of Open Banking across many sectors with insights from expert panelists in Canada and UK.
Become an OBIC Member