Government welcomes final report from Advisory Committee on Open Banking
News release
August 4, 2021 - Ottawa, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the final report from the Advisory Committee on Open Banking. The report makes recommendations on how to modernize the Canadian financial services sector and implement a secure open banking system that gives Canadian consumers the confidence and convenience they are looking for in today’s economy.
The global economy is undergoing a rapid digital transformation—and the Canadian economy and financial sector are following suit. The Canadian financial sector must keep pace with the needs and expectations of consumers in the rapidly changing digital economy—while preserving the strengths of Canada’s banking system, which is recognized and admired around the world.
As noted in the Advisory Committee’s report, more than four million Canadians are currently accessing open banking-style services (e.g. personal budget planners, robo-advisors, and non-traditional lending) via “screen scraping,” which requires people to share their banking login credentials, and which is unsecure, inefficient, unregulated, and an unreliable method of data sharing. Canadians deserve a secure open banking system that is safe, regulated, efficient, and protects their interests. The government is committed to safeguarding the privacy of Canadians and ensuring they have control over their own data; this same approach will be adopted by the government as it moves forward with open banking.
With the appropriate security framework in place, open banking can contribute to economic growth in a data-driven, digital economy and improve the financial outcomes of Canadians and their businesses, which is vital for post-COVID-19 recovery.
Quotes
“Consumer-driven finance, or open banking, is already part of Canadians’ lives. Many use digital services every day to manage their money, to budget for expenses, and to make investments. Working towards a regulated, made-in-Canada system will make sure that we continue to enjoy a strong, stable, and innovative financial sector that is globally competitive, promotes consumer choice, prioritizes data privacy, and contributes to economic growth. I want to thank the committee for their work and look forward to reviewing their recommendations as we develop next steps.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick facts
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In 2018, in response to the growth of financial technology services and as part of efforts to strengthen and modernize the financial services sector, an Advisory Committee on Open Banking was tasked by the government with leading a review into the merits of open banking.
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The committee’s final report is the culmination of work undertaken since 2018, including two phases of consultation with a broad range of stakeholders, engagement with subject matter experts, public opinion research, extensive reviews of open banking in international jurisdictions, and the committee’s own expertise. It outlines what an open banking system could offer Canadians and a roadmap for how to deliver it.
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