Canada’s Open Banking Framework Receives Royal Assent
Last month, a major achievement for the Canadian fintech industry was made with the royal assent of Bill C-69. This bill presents the open banking framework (also known as consumer-driven banking) into Canadian law, marking a significant transformation in the financial landscape. This accomplishment wouldn’t have been possible without the advocacy done by organisations such as Fintechs Canada.
A Win for the Canadian Fintech Sector
Open banking empowers individuals by giving them control over their financial data, allowing secure sharing with third-party providers. This is a monumental victory for the Canadian fintech sector and the general public. The framework will encourage innovation and competition, enabling fintech companies to offer personalised financial products and services more easily. This will drive industry growth, attract investment, and create jobs, resulting in a more dynamic financial services market.
Benefits for Canadians
For Canadians, open banking will mean enhanced financial transparency and control. Consumers will have a comprehensive view of their financial situation, making it easier to manage finances. Open banking will also promote greater financial inclusion, providing access to tailored financial products, especially for those underserved by traditional banks. Security and privacy are prioritised, with strict data protection standards ensuring that consumers’ financial information is securely handled and shared only with their consent.
Apart from Bill C-69, Bill C-59 also received royal assent, expanding Payments Canada’s membership to include payment service providers, credit unions, and clearing houses, marking a critical milestone towards modernising payments in Canada.
The royal assent of these bills marks a landmark moment for Canada’s financial ecosystem, fostering innovation, competition, and consumer control. As the fintech sector capitalises on this opportunity, Canadians can look forward to a more inclusive, transparent, and secure banking experience. The remaining open banking framework work will be legislated this fall.
