House Standing Committee on Finance (May 31, 2024):
ISSUE: FCAC’s research into consumer-driven (open) banking

On FCAC’s open banking public opinion research (POR)

• FCAC’s policy and research functions have already made important contributions to the development of the Consumer-Driven Banking Framework.
• For example, as part of its mandate FCAC monitors and evaluates trends and emerging issues that affect financial consumers, including open banking.
• In June 2023 FCAC conducted public opinion research into Canadians’ awareness of and expectations for open banking.
• This public opinion research shows that Canadians’ knowledge and understanding of open banking is low.
• The research also shows that that strong and consistent consumer protections and consumer education would make consumers more likely to use open banking.
• Key findings from our public opinion research on open banking:
  • Finding 1: Canadians assume that the protections are the same when using a fintech or a bank app. Only 18% of respondents knew that protections are different when using services offered by fintechs versus banks.
  • Finding 2: Most Canadians (over 80%) would not use, or would stop using, fintech product and services if they were not protected against theft, fraud, or accidental loss.
  • Finding 3: Few Canadians (just 9%) have heard of open banking. Of those who have heard of it, fewer still understand it.

On “diverse needs” of Canadians from OB POR data

• FCAC’s public opinion research also indicated that certain groups of Canadians have a higher interest in open banking than other survey respondents. These groups include:
  • recent immigrants,
  • people aged 18-34 years,
  • men, and
  • those with household incomes of $60,000 or more
• FCAC’s research also indicated some groups are less likely to have heard of open banking than other survey respondents, including:
  • Seniors,
  • francophones,
  • lower-income respondents, and
  • women