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Fintechs Canada calls for renewed commitment to open banking, payments modernization

Fintechs Canada asked the government for progress on open banking and payments modernization in its submission to the House of Commons Standing Committee on Finance (FINA) in advance of the 2024 federal budget. FINA consults on priorities in advance of the upcoming federal budget every year.

With members who collectively serve millions of Canadians on a daily basis, Fintechs Canada is the unified voice for Canadian fintech. Members include market-leading fintechs, fintech-friendly financial institutions, the technology companies that power the credit union space, and global fintech companies, among others.

In Canada, there’s an opportunity to make life  more affordable by giving Canadian consumers and businesses relief from fees in the financial sector. One survey found that Canadians are paying thousands of dollars in banking fees throughout their lives, in some cases exceeding the amount of interest they’re generating in their savings accounts. 

There’s also an opportunity to strengthen the integrity and resilience of Canada’s financial sector, while expanding access to more tailored financial services. For example, millions of Canadians share their financial information via screen-scraping because of the more tailored and affordable financial services they can access in return

Below are Fintechs Canada’s list of recommendations.

1. Make Canada more affordable by giving Canadian consumers and businesses relief from fees in the financial sector by:

  • Amending the Canadian Payments Act in Budget 2024, if not earlier, to give banks, credit unions, and regulated payment service providers equal access to Canada’s real-time payment systems.
  • Supporting Payments Canada’s efforts to build a new real-time payment system.

2. Strengthen the integrity and resilience of Canada’s financial sector, while expanding access to more tailored financial services by:

  • Publishing a code of conduct that specifies the rules for data sharing in Canada’s financial sector, ensuring that all accredited participants in Canada’s open banking system must meet a common and transparent set of requirements and standards.
  • Committing to strengthening oversight and governance of Canada’s “open banking” system to protect the privacy and financial well-being of Canadians by creating a fit-for-purpose entity to manage the administration of the system.

To access Fintechs Canada’s full submission, click here.

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