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Canadian government sees consumer-directed finance as part of the future of financial services

Canadian government sees consumer-directed finance as part of the future of financial services

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After consulting financial system stakeholders, consumers and business organizations, the Canadian government recently announced plans to develop a framework for consumer-directed finance (or open banking).

Ahead of further consultations, the government has revealed some principles it considers important for such a framework.

Excerpts from the Report of the Advisory Committee on Open Banking, 2020

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The committee heard that, with the strength of its financial services sector, ambitious innovators and top talent, Canada has the potential to be a leader in the development of consumer-directed finance – but that it risks falling behind if it does not take timely and concrete action.

Consumer-directed finance could deliver tools that would support Canadians in improving their financial outcomes.

While there are risks – principally those related to consumer protection, privacy and cybersecurity – the committee found that these risks exist in the current unstructured environment, and implementation of a structured framework could serve to better address and manage them.

The committee heard broad-based agreement from stakeholders that the development of a consumer-directed finance framework, with appropriate safeguards, established in collaboration with industry and government, would more effectively deliver benefits to Canadians and mitigate risks involved in data sharing.

www.canada.ca/en/department-finance/programs/consultations/2019/open-banking/report.html


Produced by Randall Anthony Communications. The Globe’s editorial department was not involved in its creation.

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