FCAC welcomes new mandate to oversee Canada’s Consumer-Driven Banking Framework

New Framework prioritizes innovation and strong and consistent consumer protections

July 3, 2024

Ottawa ON

With the recent passing of Bill C-69, the Budget Implementation Act, 2024, the Financial Consumer Agency of Canada (FCAC) officially assumes the responsibility of overseeing, administering and enforcing Canada’s Consumer-Driven Banking Framework. 

Consumer-driven banking, also referred to as open banking, will enable consumers to securely access and share their financial data with financial technology companies (fintechs). For example, it will allow Canadians to safely access innovative products and services that can help them better manage their finances and improve their financial well-being. This may include accessing applications allowing them to build their credit by using transaction data, making it easier to get a loan, rent an apartment or qualify for a mortgage. 

As a leader and innovator in financial consumer protection, FCAC welcomes its new role. As a regulator, FCAC already supervises the compliance of federally regulated financial entities, such as banks, with consumer protection measures set out in legislation, public commitments and codes of conduct. 

FCAC is also mandated to strengthen the financial literacy of Canadians. It does this by implementing Canada’s National Financial Literacy Strategy in collaboration with organizations across the financial ecosystem including financial service providers, consumer advocacy groups, and provincial and territorial regulators. The Agency also conducts research to better understand consumer needs and behaviours, including how financial decisions are made, and uses this research to inform policy recommendations, and to help consumers build financial resilience.

FCAC leads consumer awareness campaigns and provides authoritative information resources to help Canadians navigate the financial marketplace. The Agency is therefore well-positioned to oversee the Consumer-Driven Banking Framework and ensure that financial consumers are well-protected and well-informed. 

With its expanded mandate, FCAC will oversee and promote a Consumer-Driven Banking Framework that supports innovation, protects consumers, and contributes to Canadians’ financial well-being while advancing Canada’s economic growth and international competitiveness.