Canada launches open banking consultation

Canada launches open banking consultation

The Canadian government has launched a public consultation on the merits of Open Banking as it seeks to gauge consumer enthusiasm for sharing financial data with third parties.

The Department of Finance Canada set up an Advisory Committee on Open Banking in September to investigate whether the country should follow the UK in making it easier for people to let third party financial services providers access their banking data.

Now, a consultation paper has been published and individuals and organisations are being invited to offer their opinions on whether open banking would provide meaningful benefits, how risks related to consumer protection, privacy and security should be managed, and what role government should play in any implementation.

The government says that open banking could spur providers to offer more tailored products and services, on a more competitive and innovative basis. In addition, customers could benefit from greater transparency, helping them to make more informed decision and move and manage their money better.

The Canadian Bankers Association is less enamoured with the idea, and has in the past warned that giving third parties access to customer data could "give rise to contagion, reputational and other types of risks with broad-ranging consequences".

Comments on the consultation can be submitted until 11 February, after which, the committee will deliver a report assessing the merits of open banking.

Last week Finextra marked the first anniversary of the UK's Open Banking regime with an in-depth analysis of its success so far.

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