Open Finance Network urges swift action on Canadian Open Banking

This urgent push towards the implementation of Open Banking also emphasised the necessity to harness the collective energy of the financial services sector. The OFNC's letter cautions that Canada is at risk to become the sole G7 nation without a regulatory-driven framework,  should the proposed Personal Financial Rights Rule by the Consumer Financial Protection Bureau in the United States be enforced. 

In the communication, OFNC underscored the importance of enabling the Open Banking Lead's report and recommendations as the definitive initial step in establishing an Open Banking framework. The letter has been directed to Open Banking lead Abraham Tachjian and the Honourable Peter Bethlenfalvy, Ontario government’s Minister of Finance, who expressed support for Open Banking and Real-Time Rail in the 2023 Ontario Economic Outlook and Fiscal Review. 

OFNC drew attention to a 2019 advisory committee report by the government, emphasising that inaction poses risks to the global competitiveness of Canada’s financial sector. The board expressed concern about the potential of falling behind despite significant investments in Open Banking since the formation of the Advisory Committee in 2018. 

In another development, a conservative shadow minister for pan-Canadian trade and competition introduced his private members bill, C-365, the Consumer-Led Banking Act, in November 2023. He advocated for the government to advance Open Banking, asserting that delays in legislation are protecting major banks at the expense of potential savings for Canadians. He also highlighted the Conservative plan to empower Canadians to control their financial data, enabling competition among banks and fintech companies, with potential savings of hundreds of millions of dollars per year based on UK reports.

The launch of Open Banking in Canada

In August 2023, as part of an interview for The Paypers, Marissa Daniels, Senior Associate at Torys, discussed the progress of Open Banking in Canada, its regulatory pathway, partnerships, and rules, as the country is awaiting the implementation of an Open Banking framework. 

She highlighted that Canadians are eagerly awaiting the launch of an Open Banking framework even though there is not yet a firm date for adoption. However, she revealed that there is talk of a framework being introduced by the end of 2023. 

An important consideration for Open Banking in Canada is the principle that an individual has a right to control their personal information and how that information is communicated to third parties. This right stems from Canada’s Digital Charter and the Consumer Privacy Protection Act.