Category Archives: Fintech Opinions

LatAm in Focus – Podcast: The Future of Fintech in Argentina

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AS/COA | Luisa Horwitz | February 19, 2020

Fintech in argentina - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaIn a region where a large portion of the population is underbanked, fintech offers an innovative solution for Latin America, paving the way for wider financial development, competition, and inclusion in the region.

In the case of Argentina, fintech startups are sprouting and spreading fast. Pierpaolo Barbieri, founder of the startup Ualá, talked with AS/COA Online’s Luisa Horwitz about what motivated him to make the financial system more accessible in Argentina, a country where more than half of people have never had access to a non-cash payment method. “What we try to do is democratize access to financial services,” says Barbieri, who in this episode also covers the generational divide when it comes to fintech, as well as what the sector looks like across Latin America.

 

We don’t want to change the system from within; what we want is a new system. 

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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HSBC Canada Breaks from Big Six Banks in Call to Encourage Fintechs

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The Logic |By Zane Schwartz | Feb 12, 2020

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While Canada’s Big Six banks urge caution about the introduction of open banking, the Canadian subsidiary of U.K.-based multinational HSBC wants the federal government to require banks to share information with the fintechs trying to compete with them.

In a February 2019 submission to the finance department’s advisory committee looking at open banking rules, recently made public, HSBC Canada CEO Sandra Stuart requested the government introduce legislation mandating “open banking.”

The call comes as the Big Six banks are urging caution on open banking. HSBC Canada is the only foreign bank or subsidiary to make public its submission to the committee.

 

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Banks, fintech startups clash over ‘the new oil’ — your data

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Politico | Victoria Guida | Feb 7, 2020

JP Morgan - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaFintech companies argue that giving banks a tight grip over the flow of information will allow the big lenders to snuff out new competitors.

The nation’s banks are locked in a bitter fight with upstart technology companies over the control of their customers' financial data — and the consumers whose personal information is at stake are mostly spectators.

JPMorgan Chase, PNC and other major lenders are threatening to limit the access of middlemen that are hired by financial apps like Venmo and Betterment to grab customers' account information from the banks' websites. The banks warn that financial information is less secure in the hands of these data aggregators, a worry shared by federal investigators, and that there are few controls over the sale of the information to third parties like hedge funds.

See:  Minister Morneau announces second phase of open banking review with a focus on data security in financial services

For their part, financial technology companies argue that giving banks a tight grip over the flow of information will allow the big lenders to snuff out new competitors and make it harder for customers to compare rates and prices for different services.

The ability to maintain access to that data is so valuable that the powerful middlemen, which work on behalf of thousands of financial apps, are doing something that companies almost never do: asking the government for more oversight to prove that they are responsible handlers of sensitive data.

“Data is the new oil,” said Linda Jeng, a senior fellow at the Georgetown Institute of International Economic Law and a former Federal Reserve official.

“If you have access to data, then you have the ingredients to build better services.”

The conflict is part of the existential challenge that the fintech upstarts are posing to banks and their record profits as they increase the speed and convenience of transferring money or getting mortgages approved. Much of the battle is over information, and it has escalated in the absence of government rules establishing that customers themselves control their own personal data, as in the European Union.

The dispute, brewing for some time, is now spilling out in the open. JPMorgan Chase is making moves to cut off the ability of data aggregators to obtain customer data without the bank’s consent.

See:  Fintechs divided on screen scraping ban

The middlemen — called “screen-scrapers” because of the way they get the data — include Plaid and Yodlee, which most payment app users might not even know exist. They use a consumer’s bank username and password to pull account information, a right that people sign over to the digital payments companies when they do business with them, giving the aggregators the ability to grab more data whenever they like.

The aggregators have access to any data that the customer can see when they log on to their bank's website — account balances, transaction data, mortgage information.

JPMorgan wants to require companies to negotiate a standardized set of data fields that they can request. In December, it reached a deal with Yodlee to that end and has previously struck agreements with other aggregators.

"We want to protect our customers’ financial data while giving them more visibility and control when using the financial apps," said Paul LaRusso, managing director of digital platforms at JPMorgan Chase.

Meanwhile, PNC has already started restricting the information that aggregators like Plaid can get using customer-provided login information.

“PNC’s goal is to accommodate our customers’ choice to connect to the fintech apps they want to use while also ensuring that those connections are made safely and securely,” said Karen Larrimer, PNC’s head of retail banking.

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Fintechs divided on screen scraping ban

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ZDNet | Aimee Chanthadavong  | Jan 30, 2020

Screen scraping vs api - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaSome are calling for screen scraping to be banned while others argue it will hurt the fintech industry.

Founding director of The Regtech Association and Verifier CEO, Lisa Schutz, has urged for the Australian government to follow in the footsteps of the European Union (EU) and cease screen scraping.

"I believe passionately that screen scraping should be prohibited as it is in the EU," she told the Senate Committee of Financial Technology and Regulatory Technology on Thursday.

Screen scraping is the process where customers give a third-party company, such as a fintech firm, permission to access their data before taking a "snapshot" of it and using it to deliver a service or product to the customer.

See:  BCSC seeks insights through two new stakeholder forums

She explained that while Verifier has the option to use screen scraping, it has instead chosen to access customer data under the 12 principles of the Privacy Act so it does not impede on the privacy of consumers.

"It's the long way to get the right outcome … [but] it comes back to what is the 2050 Australia that we want to live in," she said.

Schutz also took the opportunity to address how the Consumer Data Right, specifically Open Banking, would enable the sharing of data in a controlled and respectable manner.

The other alternative, she proposed, was to follow in the footsteps of the EU, which "put [a] sunset on screen scraping and that was for 18 months".

The hearing, chaired by NSW Liberal Senator Andrew Bragg, also heard from Dave Stein, head of corporate development at Melbourne-based fintech startup Airwallex, who agreed with Schutz's call to ban screen scraping.

"Screen scraping is bad technology. It's just aided bad technology. It's a way around barriers that exist, but it's not actually trying to solve the underlying problem, which is helping people communicate and do what they want with their finances, pay the way they want," he said.

"We don't do that, we don't use that, but for us it's a technology decision. We just don't want to invest in a dated technology."

See:  Cambridge: Global Regulator Survey Results – Regulation of Alternative Finance is Key to Make Sector Safe to Scale for the Masses

On the other end of the spectrum was Raiz Invest general counsel Astrid Raetze, who argued on Thursday that screen scraping will always have two camps.

"There's the banks and their views, and then there are fintechs who are not bank affiliated. Largely, the argument centres around the banks saying, 'it's bad, it's wrong you have to shut it down', and then there's the fintechs who say, 'we need it'."

For Raiz Invest, they sit in the fintech camp and currently use screen scraping, Raetze said, alongside other players such as Xero, ANZ, and Macquarie Bank.

Raetze highlighted that without screen scraping, the only other alternative tool for the company to access data would be to develop APIs under open banking.

"What that doesn't take into consideration is the disparity of resources between the two camps," she explained

She said, based on guesstimates, the development process would cost the company a minimum of AU$1 to AU$2 million and require 6-12 months to complete.

"If you switch on open banking and turn off screen scraping … what you will do is hamstring the fintech industry," she said.

See:  FINTECH FRIDAY$ (EP.10-Sep 21): A Regtech-based Blockchain KYC Solution for Document Custody with Brice Penaud, CEO Commercial Passport

At the same time, Raetze said it would also mean data holders, such as the large banking institutions, would have to be prepared to enable the building of APIs.

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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On the second anniversary of open banking in the UK, what’s next?

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Verdict | Ellen Daniel | Jan 13, 2020

open banking image2 - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaOpen banking was first launched in January 2018 and received much attention from the financial community as the potential bringer of fintech disruption.

The regulations require UK-regulated banks to share their customers’ financial data (with permission) with third party providers through the use of application programming interfaces (APIs) in order to make it easier for customers to access financial services and for TPPs to develop new products.

Today marks open banking’s second anniversary and while it has impacted the financial landscape, prompting incumbent banks to adapt to innovation and opening up new opportunities in terms of consumer experience, some have argued that the regulation is yet to live up to expectations.

See:  Open Banking in the UK: what’s happened so far

Banks had until March 2019 to establish a “sandbox” environment that third party providers could access and use to test products and until June to make their APIs available to third parties, but many European banks have not adequately met key deadlines, stalling innovation. Although many traditional banks are now adhering to open banking regulations, more could be done to ensure that they also benefit from the new landscape in terms of their digital services.

It can be argued that this, along with a lack of awareness, has meant that many are yet to reap the benefits of open banking. According to predictions by PWC, 64% of adults will use open banking technology in some way by 2022, but YouGov research from 2018 indicated that 72% of adults had not heard of open banking.

This is also the case for many businesses, with new research from the Federation of Small Businesses finding that 65% of small firms would not share their banking data with other financial services providers electronically, with the majority those not currently sharing their data “wary” about doing so in the future.

Open banking anniversary: “Meaningful change takes time”

Tim Waller, partner at law firm TLT LLP explains that one of the results of open banking has been a decline in account switching:

“Commentators have recently observed a decline in the number of banks incentivising current account switching, and have argued that one of the effects of open banking has been to make it less necessary to switch personal current accounts. These same commentators argue that the clearing banks are now working harder than ever to interact with customers through new digital channels that can ‘talk to’ their traditional current accounts.

“In addition, these new digital wrappers are only going to become faster and more powerful as 5G is rolled out in the UK over the course of 2020, which is good news for customers and the development of open banking in traditional banks, challenger banks and fintechs alike.

“A real difference in how businesses are dealing with open banking”

See: 

 

Martin Buhr, CEO and Founder at Tyk, believes that open banking will open up more opportunities for smaller organisations to take on larger financial institutions:

“Open banking not only opens up opportunities for faster, better and more useful banking for existing and challenger banks, but also opens up a wide field of highly-specialised single-service opportunities to innovate beyond the scope of traditional banking services. By finally adopting service-oriented and API-first principles, banking has properly joined the information age.

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Open Banking In Canada: Navigating The Future Of Money

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Borden Ladner Gervais LLP | Stephen J. Redican, Robert Dawkins, Ross McGowan and Alexandra Nicol | Jan 9, 2020
Open Banking in Canada - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaThe Canadian financial services industry is at the threshold of change. Regulatory overhaul, the ubiquity of online services, and technological innovation and disruption will affect all players—from banks to FinTech start-ups.

Open banking will introduce new opportunities and business models for the financial services industry and new services from FinTech entrants to the market—but these opportunities come with unprecedented risks and operational requirements for a banking system that prides itself on stability. Given Canada's unique financial system and constitutional structure, the implementation of open banking won't look the same as it has in the U.K., the EU or Australia, where its introduction is already underway.

See:  Why Canada must be open to open banking

We spoke with a diverse group of leaders from across the Canadian financial services industry to understand open banking's current and emerging issues: What do you see changing? How will your organizations fit into the new landscape? What might a made-in-Canada model of open banking look like for consumers and industry?

Roundtable Participants

Anne Butler
Chief Legal Officer and Head of Policy and Research, Payments Canada
"If there isn't trust in the security and integrity of the system, especially among consumers, open banking will not succeed."

Lisa Ford
Senior Counsel, RBC Law Group, Enterprise Payments and Open Banking
"Open banking has existed in some form since the turn of the century and now technology and other changes are fuelling a more public debate."

Andrew Boyajian
Head of Banking, North America, Transferwise
"A concept like, "We're a known bank, we've been around for hundreds of years and therefore we're better equipped," doesn't necessarily make sense. Instead, it comes down to the contents and adherence to risk policies, and the importance that institutions give to cybersecurity."

Oscar Roque
AVP, Innovation, Research & Emerging Solutions, Interac Corp.
"...it's not just about the security of the technology, but also governance structure, accreditation, and making sure that the proper controls are in place so that it's not just anybody accessing that system."

Tanya Postlewaite
VP Compliance and Governance, Corporate Secretary, Chief Compliance Officer and CAMLO, Concentra
"We hope open banking will bring FinTechs into the same realm of regulation as other financial institutions, to ensure everyone is operating on the same playing field and that the integrity of the entire system is protected."

Andrew Boyajian, TransferWise

Andrew Boyajian is the Head of Banking, North America, for TransferWise, an international money transfer service headquartered in the U.K.

For a FinTech like TransferWise to grow in the Canadian market, we needed to address both operational and regulatory issues. From our experience in other markets, we find Canadian payments infrastructure can be a bit guarded. And this is a challenge not only to us, but to the entire FinTech ecosystem. As an example, in Canada only a select group of financial institutions can participate in payment systems. But Canada also goes one step further. To be a direct clearer, the current rules require financial institutions to handle a specified percentage of the gross payment volume in Canada. While this is slated to change, it can limit the system to a few big banks and financial institutions. For a company whose primary role is to provide payment services to customers, this is a challenge. First, we need to find a bank that's willing to actually onboard us as a customer. And second, we're going to rely on that banking relationship as part of our business continuity.

See:  Big Tech takes aim at the low-profit retail-banking industry

Fortunately, we've seen some progress overseas with central banks becoming more open to including non-traditional financial institutions in payment systems. TransferWise was one of the first non-banks in the U.K. to hold a settlement account with the Bank of England, which supported our direct participation in the Faster Payments Service. And more recently we learned that the Bank of England is considering even broader access rights for non-banks, in terms of holding deposits. We're seeing some progress in Canada, too, where Payments Canada is considering roles like associate memberships in the payment schemes, including the proposed real time rail. All of this movement is good, but until it's a reality there is an over-reliance on financial institutions to properly support FinTechs and their customers.

On the regulatory side, some laws and regulations are antiquated. In general, frameworks are written with the idea that businesses are physically present, with face-to-face settings for their customers. Unfortunately, we don't always see policymakers thinking about how to modernize these regimes for digital companies. But when they do look to modernize frameworks, it's important that they do so in a way that is technology agnostic. So, instead of references to specific file types, ".pdfs" as an example, we encourage policymakers and regulators to think about principles that transcend today's technology to future-proof them as much as possible.

One example of regulation that is already changing for the better is the move to safeguard customer funds held by payment service providers. It's a protection that doesn't currently exist for Canadian consumers. If you hold a balance with a FinTech, there isn't a live regulatory framework to ensure that the balance is protected, set aside, and guaranteed for the consumer. It's in a similar vein to CDIC or provincial schemes to protect deposits at financial institutions. Fortunately, the Department of Finance, as part of their overhaul of the retail payment system, saw this gap and is taking steps to put in place safeguarding methodology for Canadian consumers. It will mean protection and transparency for consumers, so they can know they're getting the same level of service from FinTech providers as they are with banks.

Often banks or regulators may feel that money transmitters, payment service providers, or FinTechs pose a higher risk for money laundering. But if we think about the topics of money laundering or financing of terrorism, those can occur through any channels — whether it's a FinTech or a bank. So, we don't think the argument of higher AML risks is a reason to exclude FinTechs from direct access to payment systems. The challenges in addressing AML are the same for FinTechs as for banks — laws do not really differentiate between the type of provider.

See: Inflection point:Seven transformative shifts in US retail banking

We can see more validity in the argument that keeping a smaller number of entities with that clearing access could promote stability. Generally, a regulator should be thinking about sound capitalization or business models and then the operational risk policies that entities have. Those concepts are broad and universally applicable. If one institution or entity is capable of meeting them in the same fashion that a defined depository financial institution is, we really don't see the difference and need to create a division in access rights between the two.

In the U.K., while TransferWise has been in a position where we have advised policy makers relating to the implementation of open banking deriving from PSD2, we have instead focused more on transparency in fees. That said, we can certainly see areas where there are benefits. For example, with any payment method other than payment cards — like direct debit — there is quite a bit of information that could be obtained about a customer to help inform a merchant whether or not those funds are actually going to settle, as well as the overall risk profile of the individual with whom they're engaged in business. One of the benefits that I can see in open banking is the ability for consumers to share that information in a standardized way.

Some technology already exists through a screen-scraping service, where a consumer might choose to enter an online bank ID and password in a third-party application. That application essentially logs in to that customer's online bank account and scrapes the screen to obtain this data and then provides that data back to a platform. But that's brittle. If a bank decides to change its interface or implement two-factor authentication, for example, that could easily break the service. Also, depending on the bank, that could be a violation of the terms of use for the account because the account owner has granted access or authorization to a third party. Open banking can be a way to simplify these protocols and allow that same data set to be universally applied. And, more importantly, it gives consumers an active role in deciding with whom and how to share that information.

In today's world, where digital information is increasingly being passed through digital channels, cybersecurity is an area that we need to deal with. And the payments industry saw that with payment cards — as things began to move from point-of-sale to card-not-present, the idea of security and how these payment instruments are being authenticated and validated became important. It's a matter of the market adapting to understand how data is being stored and transmitted, identifying where the vulnerabilities are, and knowing that responsibility is not housed within any particular provider or role in the payment chain. Instead, it's universal.

See: How Jack Ma’s $290b SME credit engine is changing Chinese banking

Whether the industry is using cloud services or their own infrastructure, they're all susceptible to possible attacks by any type of bad actor. That's not something that's exclusive to a FinTech. So, all entities need to have robust plans for fraud, cybersecurity, and data protection. Meanwhile, regulators should understand that these aren't always challenges defined by entity type, but rather by entity preparedness. A concept like, "We're a known bank, we've been around for hundreds of years and therefore we're better equipped," doesn't necessarily make sense. Instead, it comes down to the contents and adherence to risk policies, and the importance that institutions give to cybersecurity.

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Why Canada must be open to open banking

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The Globe and Mail | and | Jan 2, 2020

digitral open banking - LatAm in Focus - Podcast: The Future of Fintech in ArgentinaAdam Felesky is CEO of Portag3 Ventures. Andrew Moor is president and CEO of EQ Bank.

Canada is often said to be facing an infrastructure deficit, having failed to adequately invest in transit, roads and water systems. But the country is also encountering a financial services infrastructure deficit. That is to say we lack the infrastructure and related government policies needed to safely, efficiently and effectively enable financial data to be moved and shared by consumers.

Much like the physical systems required for transportation, financial services infrastructure improves national well-being and has the potential to bring benefits to all citizens. For those of us in the banking, payments and financial services sectors and in regulatory, policy making and consumer advocacy roles, the time has come to erase this deficit, which manifests itself in unnecessary costs for customers and their financial services providers, limited transparency for those providing financial advice and roadblocks to innovation.

See:  Open Banking Era Starts in Australia (Feb 2020)

Open banking provides the clearest opportunity to set Canada’s financial infrastructure on the right course and is already achieving success around the world. With 40 countries developing their own open banking plans, Canada needs to take bold action.

Where does Canada stand? The government first declared its interest in open banking in the 2018 federal budget. This interest was repeated in the 2019 budget. In 2019, the Senate produced a well-researched report urging decisive government action. In parallel, the Minister of Finance commissioned a report from an expert advisory panel. We hope this report will be released early in 2020.

Beyond this process, open banking has generated considerable interest from consumer advocates, the banking industry and emerging fintech players who have explored the benefits and risks. Among those who have thought seriously about the issues, our sense is that there is overwhelming support: open banking will keep financial information safer and provide more choice at a lower cost for Canadians.

There is general agreement with the Senate report that “consumers and small businesses would also benefit from increased competition and innovation in the financial sector.

Small and medium-sized businesses (SMEs) stand to gain significantly.

As a recent C.D. Howe report highlighted, Canada lags international peers in allocating capital to SMEs. Part of this deficiency is attributable to challenges that banks have in getting the information required to assess credit for SMEs – a problem that can be alleviated by open banking.

Given the widely held view that open banking is a good idea, why is Canada holding back? One reason appears to be a lack of political desire. Recent discussions with elected officials have suggested that their perception is there are no votes in open banking and this may hold back progress on this important issue. As more Canadians understand the benefits, we believe there will be votes for politicians who engage with the open banking agenda. Open banking is clearly an issue whose time has come. We urge one of the soon-to-be-announced parliamentary committees to truly understand the benefits.

See:  Monopoly-Friendly Canada ‘Does Not Treat Competition Policy Seriously’

That said, we are encouraged by Canada’s Digital Charter. Principle 4 of this charter espouses the core idea behind open banking: that consumers have rights to their data and can share it or transfer it. We would like to see the Department of Finance work more closely with the Ministry of Innovation, Science and Economic Development to bring these principles to life.

In banking circles, there is a debate about the relative prioritization of open banking and improving data security standards. Working on these two issues together is the only path to success. By their actions, customers are showing a strong desire to access their data in convenient forms. Absent open banking, consumers share passwords and access to their accounts with various providers, leaving them vulnerable to data breaches. It’s a compromise they should not have to make. Developing a secure financial services infrastructure, that is available to all credible participants and that keeps the entire system safe, is the only practical route forward.

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NCFA Jan 2018 resize - LatAm in Focus - Podcast: The Future of Fintech in Argentina The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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