Global fintech and funding innovation ecosystem

Three ways open banking could impact wealth management

Investment Executive | Greg Meckbach | Sep 16, 2022

Fintech open banking - Three ways open banking could impact wealth management

Image: 123RF

Open banking — available in Britain but not yet in Canada — is when a financial institution shares client account details (with consent) with a third party, without the client having to share their login name and password.   In 2021, a government-appointed advisory committee recommended that open banking be up and running by January 2023.

In the committee’s proposed initial phase, third-party service providers (such as fintechs) should be able to read data from clients’ chequing and savings accounts, investments accounts, RRSPs, TFSAs and non-registered accounts that hold stocks, bonds, mutual funds and GICs, the committee said in its final report. Open banking should be mandatory for federally regulated banks and optional for provincially regulated institutions and “other entities,” the report added.

  • Fee comparison:  Armed with such data, a third-party fintech could potentially tell a consumer how much they could save on fees, said Stephanie Holmes-Winton, CEO and founder of Halifax-based fintech CacheFlo Inc. Through open banking, a fintech could learn that a client has multiple accounts at different institutions with similar investments in them. The fintech could then compare the fees, Holmes-Winton said.


Canada’s Open Banking Journey: Interview with EY’s Dr. Francesco Pisani and Dr. Alexander Christoph

Canada’s Open Banking Working Committees Flag ‘Governance’ as the Latest Gap

  • Risk tolerance/matching:  Getting a complete picture of a client’s investments has other benefits. For example, a fintech could determine whether all of a client’s investments put together (as opposed to at just one institution) match their risk tolerance, Holmes-Winton suggested.
  • KYC automation: Open banking could also speed up know-your-client (KYC) processes, said Darcy Ammerman, partner and banking regulation lawyer with McMillan LLP. This is because a third party with access to a consumer’s banking data could potentially automate the process of filling out KYC forms.

Continue to the full article --> here

NCFA Jan 2018 resize - Three ways open banking could impact wealth managementThe 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:

Latest news - Three ways open banking could impact wealth managementFF Logo 400 v3 - Three ways open banking could impact wealth managementcommunity social impact - Three ways open banking could impact wealth management

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - Three ways open banking could impact wealth management


Leave a Reply

Your email address will not be published. Required fields are marked *

3 + five =