That is the recommendation of Canada’s Senate Committee on Banking, Trade and Commerce. The senate released a report, Open Banking: what it means for you, on 19 June.
Specifically, it warns that Canada lags behind the UK and Australia, where open banking is set in a legal framework.
Canadian Open Banking: senate recommendations
The senate proposes that the Financial Consumer Agency of Canada act as the interim oversight body for screen scraping and open banking activities. In addition, the agency will have a mandate to conduct research and public education and respond to complaints.
It is also proposed that funding is given to consumer protection groups to conduct and publicise research on open banking.
- Facilitate the development of a principles-based, industry-led open banking framework;
- The federal government should modernise the Personal and Electronic Documents Act to align with global privacy standards, and
- A consumer right to direct that personal financial information be shared with another organisation.
The report also recommends creating a registry of accredited third-party providers. It also proposes creating an innovation sandbox to test and develop open banking technology.
Senator Doug Black, chair of the committee says: “Canadians are eager to embrace technology that makes their lives easier. The federal government has a responsibility to create an environment in which the use of this technology is truly in consumers’ interests.”
Senator Carolyn Stewart Olsen, deputy chair of the committee adds: “Open Banking reveals a lot about ourselves. It is a trove of personal data. Canadians deserve to have control over who has access to that information. Our report clearly shows what the government must do to keep Canadians’ personal information safe.”