Data portability

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FDATA North America Joins Industry Trade Groups in Letter to Department of Finance on Implementation of Recommendations from the Advisory Committee on Open Banking Report

November 10, 2021, Washington, DC – Last week, the Financial Data and Technology Association (FDATA) of North America, along with the Paytechs of Canada Association and the Canadian Lenders Association (CLA), sent a joint letter to Finance Minister Chrystia Freeland requesting that the Department adopt the phase one and two recommendations of the Advisory Committee on Open Banking report and urging its public support for the same.

In the letter, the groups, whose organizations represent nearly 250 financial technology companies, emphasize the importance of swift implementation of the recommendations to ensure Canada remains competitive in the global market. Countries around the world, from the United Kingdom and New Zealand to Australia and the United States, have seen marked improvements in financial access and inclusion through open finance products delivered by technology-based financial services providers. “By contrast, Canadian consumers or small businesses have no legally binding right to their own financial data, which stifles competition and innovation in the financial services marketplace,” the groups state. 

Additionally, the groups state that a delay of implementation of the Advisory Committee’s recommendations open the door for some of Canada’s large financial institutions to dismiss the government’s intention to deliver open finance in line with the report’s recommendations, which undermine the certainty around the commitments.

“It is critically important that the government confirm to financial institutions, financial technology companies, and Canadian consumers and small businesses its intention to implement an open finance regime in line with all of the Advisory Committee’s recommendations,” the groups state. Specifically, they point to the appointment of an open banking lead “as soon as possible,” creating a legally binding financial data right, and beginning work on the Advisory Committee’s second phase, “which must include payment initiation and account creation capabilities, as well as a formal governance entity.” 

ABOUT FDATA NORTH AMERICA
FDATA was heavily involved in the UK Open Banking Working Group in 2015. In 2016, the working group’s output was published by Her Majesty’s Treasury as the Open Banking Standard. FDATA North America was founded in early 2018. Its members collectively provide tens of millions of consumers in Canada, the United States, and Mexico with aggregation-based tools to better manage their finances.

Members include air (Alliance for Innovative Regulation), APImetrics, Basis Theory, Betterment, BillGo, Codat, Direct ID, Envestnet Yodlee, Equitable Bank, Experian, Finansystech, Fiserv, Flinks, Interac, Intuit, Inverite, Kabbage, Mogo, Morningstsar, M Science, MX, Petal, Plaid, Questrade, Rocket Mortgage, SaltEdge, Trustly, ValidiFI, VoPay, Wealthica, Xero, and others.

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Member Spotlight: Interac

In 1984, Canada’s top financial institutions came together to create Interac Association, a cooperative venture dedicated to giving Canadians broader access to their money through a single shared network. Twelve years later, eight of the founding institutions created Acxsys Corporation, a new entity that would develop new business partnerships and services for financial transfer, online payments, and international services.

To better fund innovation and reduce certain business, operating and legal complexities, the two entities reorganized in 2018 to form Interac Corp. Today, Interac is one of the most trusted financial service brands in Canada, operating an economical, world-class debit payments system with broad-based acceptance, reliability, security, and efficiency, helping more than 30 million Canadians families and businesses feel more in control of their money.

The Interac team are natural collaborators. They know that the benefits of co-operation outweigh the risks of fragmentation. The diversity of thought that exists when companies (and even competitors) come together produces better outcomes and solutions. Interac is a proud member of FDATA North America and is actively working with industry and government colleagues across the ecosystem to explore open banking solutions for Canadians.

The financial services company’s Innovation Lab and New Ventures team has a mandate to look ahead at the company’s three plus year horizon for new innovations. They research, develop strategies and pilot new solutions before taking them to market.

A foundational requirement of emerging solutions is to build consumer trust. Canadians need to trust that new technology is not only secure, but that it will provide meaningful benefits in their lives. A recent Interac survey found being in control of their financial data is important to 90 per cent of respondents, and more than half said a new financial data sharing option will “greatly benefit” Canadian consumers.

At Interac, leaders share in this optimism for open banking to support consumer needs and they are committed to collaborating with financial institutions and fintech companies and serving as a bridge for the ecosystem. The team sees great promise for Canada’s future open banking framework to enable the development of data-driven products and services that will increase access to affordable solutions tackling pressing personal and business needs such as debt reduction, benefits processing, financial planning, and the provision of faster loans.

Oscar Roque, VP, Strategy and Emerging Solutions at Interac, sees an opportunity to form a minimum viable ecosystem (MVE) for open banking, grounded in a clear, easy, and transparent consent experience. “Our collective participation in building an MVE will set the stage for data portability and empower Canadians to take control of their data – all for the betterment of our society.”

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FDATA North America Submits Comments to Ontario’s Privacy Protection Engagement Consultation

September 3, 2021, Washington, DC – Today, the Financial Data and Technology Association (FDATA) of North America submitted comments to Ontario’s consultation on efforts to strengthen and modernize privacy protections in the province. 

In its comments, FDATA North America called on the Ontario government to include a legally binding financial data access and portability right in any forthcoming data protection legislation or regulation. Executive Director Steve Boms pointed to other countries around the world who have provided legally binding data access, privacy, and portability regimes for their citizens and pointed to existing statutory and regulatory protections that work towards achieving this goal. “Ontario, and Canada more broadly, must support the rights of individuals to access and transfer their financial data, through data portability, to keep pace with other international standards that consider this right to be a key feature of a modern privacy regime,” Boms noted. 

In order to build an ecosystem in which Ontarians’ financial data is protected while providing for the right to benefit from data access and data portability rights, Boms highlighted the importance of competition and adequate protections for data privacy and security in a data-driven financial services ecosystem. Doing so will deliver lower costs, better services, and better outcomes for consumers’ and small business’ financial outcomes, he stated. Boms noted that approximately four million Canadians already utilize at least one financial technology application which relies on consumer consent and enables them to control which providers they allow to access their data, how their data is being used, and when access to their data is revoked. 

Boms concluded by noting that while the federal government moves forward slowly, Ontario can – and should – provide for stronger financial data access rights for its residents more quickly. 

Image result for paperclip iconFDATA North America Submission to Ontario Government on its Privacy Protection Engagement Consultation

ABOUT FDATA NORTH AMERICA
FDATA was heavily involved in the UK Open Banking Working Group in 2015. In 2016, the working group’s output was published by Her Majesty’s Treasury as the Open Banking Standard. FDATA North America was founded in early 2018. Its members collectively provide tens of millions of consumers in Canada, the United States, and Mexico with aggregation-based tools to better manage their finances.

Members include air (Alliance for Innovative Regulation), APImetrics, Basis Theory, Betterment, BillGo, Codat, Direct ID, Envestnet Yodlee, Equitable Bank, Experian, Fiserv, Flinks, Interac, Intuit, Inverite, Kabbage, Marble, Mogo, Morningstsar, M Science, MX, Petal, Plaid, Questrade, Quicken Loans, SaltEdge, Trustly, ValidiFI, VoPay, Wealthica, Xero, and others.

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FDATA North America Submits Comments to Alberta’s Privacy Protection Engagement Consultation

August 18, 2021, Washington, DC – Today, the Financial Data and Technology Association (FDATA) of North America submitted comments to Alberta’s consultation on efforts to strengthen and modernize privacy protections in the province. 

In its comments, FDATA North America called on the Alberta government to include a legally binding financial data access and portability right as it considers how best to promulgate data privacy standards in the province. FDATA North America Executive Director Steve Boms noted that a holistic and evidence-based approach should be taken “that recognizes the importance of data access and portability for consumers and small businesses across the province” while taking into account the realities of modern technology and digital business. 

In order to build an ecosystem in which Albertans’ financial data is protected while providing for the right to benefit from data access and data portability rights, Boms highlighted the importance of competition and adequate protections for data privacy and security in a data-driven financial services ecosystem. Doing so will deliver lower costs, better services, and better outcomes for consumers’ and small business’ financial outcomes, he stated. Boms noted that approximately four million Canadians already utilize at least one financial technology application which relies on consumer consent and enables them to control which providers they allow to access their data, how their data is being used, and when access to their data is revoked. 

Boms concluded by noting that while the federal government moves forward slowly, Alberta can – and should – provide for stronger financial data access rights for its residents more quickly. 

Image result for paperclip iconFDATA North America Submission to Alberta Government on its Privacy Protection Engagement Consultation

ABOUT FDATA NORTH AMERICA
FDATA was heavily involved in the UK Open Banking Working Group in 2015. In 2016, the working group’s output was published by Her Majesty’s Treasury as the Open Banking Standard. FDATA North America was founded in early 2018. Its members collectively provide tens of millions of consumers in Canada, the United States, and Mexico with aggregation-based tools to better manage their finances.

Members include air (Alliance for Innovative Regulation), APImetrics, Basis Theory, Betterment, BillGo, Codat, Direct ID, Envestnet Yodlee, Equitable Bank, Experian, Fiserv, Flinks, Interac, Intuit, Inverite, Kabbage, Marble, Mogo, Morningstsar, M Science, MX, Petal, Plaid, Questrade, Quicken Loans, SaltEdge, Trustly, ValidiFI, VoPay, Wealthica, Xero, and others.

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