The 2018 federal budget included a statement that a committee would be established to explore the merits of open banking in Canada. This announcement was a significant acknowledgement of the fact that open banking is happening across the globe. It’s a global movement in response to consumer demands for more control, convenience, transparency, privacy and better products and services in their financial lives. This movement will reshape the financial services industry.
Keeping up with this movement has to start at the top because the introduction of open banking in Canada will impact:
- how our banks work with each other
- independent financial technology (fintechs) that work within our financial services ecosystem
- how data is used and consumer privacy is protected
- how consumers give and maintain consent to use their data
- innovation, products and services based on open access to data
In response to the federal budget announcement in 2018, the Office of the Privacy Commissioner of Canada formed the Advisory Committee to the Open Banking Review/Financial Institutions Division. On February 11, 2019, this committee respectfully submitted its recommendations to the Department of Finance Canada.
The report titled “A Review into the Merits of Open Banking” outlines the ways in which open banking can promote a vibrant and more diverse ecosystem of financial services providers in the financial sector and offer innovative services that benefit consumers and small businesses in Canada. View the report here.