As Canada progresses towards establishing an open banking framework, a recent survey highlights the urgent need to enhance public awareness of the concept, which many people still do not fully understand.
With the Canadian government working on a system that would allow individuals to share their banking data with third parties, Deloitte conducted a survey to assess the public’s knowledge and attitudes surrounding open banking. The results revealed that only 18% of respondents were familiar with the idea, although awareness was higher among respondents aged 18 to 34, at 35%. Additionally, only 11% had heard of screen scraping.
Interestingly, a lack of awareness does not appear to deter Canadians from adopting open banking. Thirteen percent of respondents reported having previously shared or sent data from their primary financial institution to another service, indicating a readiness to engage with these practices beyond mere awareness.
Although just 35% of Canadians are comfortable sharing their data online, this number increases to 45% when informed that consent is a key principle of open banking. This suggests a potential shift in sentiment as more individuals learn about the associated safeguards.
When asked about ownership of their financial account information, 48% of respondents asserted that it belongs to them, while 27% believed it is owned by their financial institution, and 25% were uncertain.
The benefits of open banking that resonate most with respondents include better visibility of their overall financial situation (37%), the ability to track spending patterns (33%), and recommendations for investment and savings opportunities (32%). Among those who see advantages in open banking, 52% expressed the greatest interest in accessing lower loan rates and higher savings rates, while 41% valued personalized product offerings based on their spending behavior.
To optimize the implementation of open banking, Deloitte advises that industry players and regulators prioritize raising awareness, tailor features to consumer needs, target a diverse audience, and ensure transparency regarding security measures.
Deloitte concludes that Canadians appear ready to leverage open banking, with many already feeling comfortable with the proposed framework and recognizing its potential benefits.