Dozens of technology leaders have reached out to Canada’s finance minister, urging the establishment of a clear roadmap for the much-anticipated open banking framework.
After a three-year investigation into the feasibility of facilitating third-party access to banking data, the government has moved slowly towards implementing an open banking system similar to those in the UK. However, despite a promise to enact regulation by early 2023, the government has yet to take action, causing frustration within the fintech sector.
In a letter coordinated by the Council of Canadian Innovators (CCI), numerous signatories state, “It’s time for Canada to catch up with the European Union, the United States, and the UK to ensure we have affordable and innovative open banking.” The letter has been endorsed by leaders of fintech companies such as Borrowell, Koho, and Neo Financial, who warn that delaying the implementation of a secure, modern financial system could increase risks for Canadians.
To advocate for open banking, the signatories have launched the “Canadians for Open Banking” campaign, marking the second such initiative in a little over a month. In early October, industry group Fintechs Canada, alongside companies like Wealthsimple, EQ Bank, and Wise, initiated the “Choose More” campaign aimed at garnering public support for government action on open banking and payment modernization.
A Deloitte survey conducted in June revealed that only 18% of respondents were familiar with open banking, though awareness rose to 35% among individuals aged 18 to 34. Additionally, just 35% of Canadians felt comfortable sharing their data online, a figure that increased to 45% once an open banking framework is implemented.
The recent letter to Minister Chrystia Freeland emphasizes, “Today, we are calling on you to reaffirm your promise to enact open banking and provide a clear roadmap for its implementation. Many of us made business investments and strategies based on your election promise; we need assurance that you will follow through.”