Benefits of Open Banking
It offers many possibilities such as facilitating client identification and enabling customized financial services also at lower prices for better customer experience. The majority of customers in Canada use a single bank for all their investments and savings. But with open banking, they would be able to have many different accounts with different providers that include fin-tech companies as well, manageable in an integrated manner.
While open banking may mean better services and rates for customers, for FinTech companies it’s an opportunity to provide innovative products and services to consumers. For instance, imagine being able to view all of your new purchases and investment-related questions on a single app.
Open Banking Governance
Open banking has already started shaking the core of financial systems around the world especially in the UK[iii] and the EU[iv] where some open banking frameworks have started being adopted.
The Canadian government has acknowledged open banking yet have at times appeared slow[v] in their ability to make progress on the issue. In reality, the potential risks associated with open banking and sharing customer data is one of the reasons why the government has been so slow to adopt any open banking framework.
It is clear however, that if Canada fails to create a regulatory environment to facilitate open banking, it would mean falling behind other countries and risking further development and innovation in the financial industry.
and Google to name a few. Since our inception, we’ve translated those early successes into helping many of the largest corporations in both Canada and the US, drive usage and deliver user-centric experiences to their employees and clients.
We’ve become a leader in transformative digital experiences and continue to take a user-first approach to ensuring that the end customer is at the centre of our planning, across all channels and interactions.
Veriday’s diverse experience, products and professional services have allowed us to effectively tailor enterprise solutions for partners operating across industries including healthcare, financial services, government, insurance and engineering, providing us with critical insights and deep customer relationships throughout North America.
[i] Department of Finance Canada Launches Consultations on Open Banking, by Department of Finance Canada | January 11, 2019
[ii] Why Canada needs open banking, by Bryan Borzykowski | Mar 11, 2019 | Moneysense
[iii] The future of money, where you’re in control | Open Banking Limited 2020
[iv] Building a Digital Europe | European Commission
[v] Canada is dragging its heels on open banking, by Soheil Karkhanechi | September 9, 2019 | The Globe and Mail