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News

Open banking: managing data security and privacy risks high on Canadian authorities' agenda

Thursday 6 February 2020 10:22 CET | News

A committee advising Ottawa on the feasibility of open banking has launched discussions around ways to manage data security and privacy risks.

A four-person advisory committee, made of experts from the private sector, called on the federal government and the finance sector to create a framework for enabling consumers to safely electronically pass their personal financial data across multiple web sites.

The committee aims to hold meetings starting in the spring, and then offer advice on potential solutions and standards to enhance data protection in the financial sector. It will examine issues such as governance, consumer control of personal data, privacy, and security. Recommendations are expected later in 2020.

Open banking/consumer-directed finance lets consumers give financial institutions the right to share the financial data they have in separate accounts — like their banks, investment dealers, mortgage brokers and insurance companies — for easier services. Thus, for software developers, consulting firms and startups, federally approved consumer-directed finance could mean big opportunities depending on the standards and regulations the government sets.

One question is whether open banking will be driven by government regulations (as in Europe) or be self-regulated by the financial sector. The committee suggests Ottawa at least set the ‘guardrails’, according to IT World Canada. Another question is how open banking will benefit people who can’t get a digital identity because they don’t have computers, smartphones or bank accounts.



Source: Link


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Keywords: Open Banking, Canada, managing data, security, privacy risks, finance, banking, fintech, API
Categories: Banking & Fintech
Companies:
Countries: Canada
This article is part of category

Banking & Fintech

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