Open Banking Initiative Canada (OBIC), has announced that it has published Canada’s first Open Banking Manifesto.
With the mandate to convene all Canadian financial services stakeholders to a common cause as well as to be the voice for all participants: consumers, small businesses, fintechs, banks, credit unions and other financial institutions, OBIC’s Manifesto does not see Open Banking as a zero-sum game. An open banking framework will enhance product development, security and fraud prevention, and personalization and customization while maintaining the systemic stability and safety widely recognized as critical cornerstones of the Canadian banking system – leading to benefits and opportunities for all stakeholder groups in the ecosystem.
“Being the focal point for Consumer-Directed Finance in Canada, we here at OBIC believe that Open Banking can help all Canadians in their financial livelihood, especially the 48% of us that are $200 or less away from insolvency at the end of each month.” – Christian Clapton, Co-Director of OBIC
The global progress towards Open Banking is moving quickly in other jurisdictions, including the UK, Australia, New Zealand, Brazil, Singapore, and Hong Kong. The US is also making preparations to implement its own framework. The Manifesto highlights how Canada is at risk of falling behind these markets and decoupling from this international sector as a part of the integrated global financial system. Two years ago, the full Senate of Canada stated:
“Canadian consumers need open banking regulations as soon as possible for three main reasons: to keep their personal financial information safe; to be provided more choice and improved financial products and services; and to help keep the Canadian financial sector strong and internationally competitive.” – Open Banking: What it means for you, June 2019 Standing Senate Committee on Banking, Trade and Commerce Senate of Canada
These comments were shared in the report “Open Banking: What it Means for You” from June 2019 by the Standing Senate Committee on Banking, Trade and Commerce Senate of Canada, and to this day we have made little to no progress addressing these important issues.
