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March 20, 2019, Washington, DC – In advance of a Canada Standing Senate Committee on Banking, Trade and Commerce hearing on March 21, the Financial Data and Technology Association today released a new paper, “Opportunities in Open Banking,” that outlines the benefits of open banking for Canadian consumers, businesses, financial institutions and the economy. Executive Director Steve Boms will testify before the committee tomorrow to present the paper.
“Canadians increasingly depend on technology-powered tools to improve their financial lives,” said Boms. “To foster innovation and spur improved financial outcomes, Canada should implement an open banking regime that provides consumers with the legal right to their financial data and builds appropriate safeguards around a well-managed ecosystem. For the sake of consumers’ financial wellbeing and innovation, the time to act is now.”
The new paper discusses:
- What open banking is and how it recognizes consumer demand and needs make it necessary to share financial data;
- The benefits of open banking, including empowering customer choice, ensuring customer protection and enabling industry innovation;
- The need to ensure consumer access, consent and protection;
- A discussion of how data and technology are shared and utilized in an open banking ecosystem; and
- The importance of implementing effective policy and regulatory oversight.
“If implemented properly, open banking can preserve the security and stability of the financial system while empowering customers and accelerating opportunities for innovation,” said Boms. “This paper provides an outline for success, based on lessons learned from other jurisdictions.”
In his testimony before the Standing Senate Committee on Banking, Trade and Commerce, Boms also will discuss how open banking has been embraced by other countries, outlining how the technology-powered products and services provided by incumbent financial services and fintech firms are supporting consumers and businesses as they manage and improve their finances. “Canadian consumers are already demanding the same opportunity, and they deserve to receive it,” Boms will conclude.
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 by several firms whose technology-based products and services allow consumers and small businesses to improve their financial wellbeing. Its members provide approximately 3.5 million Canadians, or roughly 15 per cent of Canada’s adult population, with aggregation-based tools to better manage their finances.