Open Banking Update

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Discussion on Open Banking Implementation in Canada

Following is a report that the Global Risk Institute published in August 2020, Data-Sharing Frameworks in Financial Services: Discussing Open Banking Regulation for Canada by Markos Zachariadis of the Alliance Manchester Business School. The report introduces basic concepts and principles related to open banking, and provides some context and background as competitive open banking is launched globally.

In the April 16 Canadian federal budget, the government announced that Financial Consumer Agency of Canada (FCAC) will be mandated to oversee, administer, and enforce Canada’s Consumer-Driven Banking Framework (Open Banking). Additionally, the Department of Finance will establish and maintain a consumer-driven banking oversight entity and framework. (See https://www.canada.ca/en/department-finance/programs/financial-sector-policy/open-banking-implementation/budget-2024-canadas-framework-for-consumer-driven-banking.html.)

Over the coming months, GRI will engage the community to continue the discussion on “how,” in an attempt to articulate consumer needs, privacy, data, cost, and security. We will engage the broad ecosystem in a discussion designed to inform, educate and guide decision-makers.

As the GRI report notes, “At its core the financial services industry is predominantly an information business.” Reviewing the journey of jurisdictions like the UK and Australia, and exploring the key themes raised previously in Canada are critical for preparing for the discussion to come surrounding implementation.

You may also want to refer to the federal government’s work on consumer-driven banking implementation, including the Open Banking Working Groups and Steering Committee, which were set up to develop the foundational pieces of Canada’s open banking system, and the appointment of an Open Banking Lead, Abraham Tachjian. (See https://www.canada.ca/en/department-finance/programs/financial-sector-policy/open-banking-implementation.html).

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Sonia Baxendale
President and CEO

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Gerard McDonald
Managing Director, Head of Research