The Senate of Canada examines Open Banking
A recent report by Canada’s Senate examines the potential regulatory role of the federal government in regards to Open Banking, as well as the benefits and challenges of such system in the Canadian context
The Senate of Canada is calling for the implementation of “Open Banking”, a “system that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs).” The Senate released a report on June 19, entitled “Open Banking: What it Means for You”.
Theoretically, Open Banking keeps bank account login credentials confidential. Such can provide users with the ability to direct their bank to share only selected data with other businesses, as well as giving them more possibilities to make payments through their bank accounts.
The report found that roughly 30 percent of Canadians feel that they don’t have control over how their personal information is being utilized (either by the government or the private sector).
The Senate offered four main recommendations:
