OPEN BANKING IN CANADA:
A force for good
In June 2019, the Senate Committee on Banking, Trade and Commerce called for immediate, decisive action from the Government of Canada to initiate an open banking framework.
Open Banking Initiative Canada (OBIC) exists to lead the way in the development of this framework. We’re 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 open banking ecosystem is set to launch in 2021. This ecosystem will evaluate technology and standards that best suit our economy and will foster a trust framework between fintechs, banks and regulatory bodies in support of the Canadian consumer.
WHAT IS OPEN BANKING?
Open banking is a global movement to help consumers be the owners of their own financial transaction data. This ownership gives them the freedom to share their data with third-party companies that can then use it to provide alternative financial services that make it easier for consumers to move, manage and control their money. Open banking also stimulates and strengthens the banking sector. It increases competition and encourages innovation and product development, all of which come back to consumers in the form of greater choice, control and personalized services.
Open banking in CANADA is 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.
Open banking equals more choice, control, security and potential for Canadian consumers and small businesses to be empowered with their finances.
Open banking positions financial institutions to create customer-centric, highly personalized solutions that will extend their reach and secure market share.
Open banking empowers fintechs to build innovative financial services technology using key data about what consumers need, both today and in the future.
Open banking provides governments with a framework in which Canadian values and rights and privacy are safeguarded within a changing digital economy.
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. OBIC is going to conduct Open Banking Themed Hackathon in order to showcase the benefits and opportunities, so look out for the details on the website.
‘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.
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.
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)