After years of anticipation, federal efforts to introduce “open banking” in Canada are finally gaining traction. This move is being met with both excitement and criticism from industry players who see the potential for innovation but are concerned about the pace of change.
Open banking allows consumers and businesses to securely share their financial information with approved banks and other companies. This could lead to the development of new products and services, as well as make it easier for customers to switch banks or compare financial products.
Recent promises in the federal budget have been hailed as a “game changer” by experts in the field. The budget includes funding for the Financial Consumer Agency of Canada and the Ministry of Finance to begin preparing for the implementation of open banking.
However, some in the industry are frustrated by the slow progress compared to other countries like Australia. They believe that the big banks in Canada have been dragging their feet to keep new players out of the market.
Despite the delays, industry players like Andrew Chau of Neo Financial and Hanna Zaidi of Wealthsimple are optimistic about the potential benefits of open banking. They believe that increased competition will lead to better pricing and more innovative financial products for consumers.
Ultimately, the introduction of open banking in Canada could revolutionize the financial industry, making it easier for consumers to manage their finances and for smaller players to compete with larger institutions. With government involvement and the establishment of a legal and technical framework, the future of open banking in Canada looks promising.