The Canadian government took the next step towards establishing Canada’s open banking system with the selection of Abraham Tachjian, Director of Digital Banking at PWC, as the Open Banking Lead in Canada.
The establishment of an open banking system aims to give Canadians and businesses greater control over their financial data and be better equipped to manage their finances.
Open banking is a system that would enable consumers to transfer their financial data between financial institutions and accredited third parties in a secure and consumer-friendly way.
It will improve Canadians’ user experiences and financial outcomes by providing access to an expanding variety of financial services, such as budgeting and savings tools. It will also benefit small businesses by helping to streamline operations and by providing faster access to credit.
Mr. Tachjian’s mandate is to develop a “made-in-Canada” regime based on the recommendations in the final report of the Advisory Committee on Open Banking. He will engage with industry, regulators, and consumer representatives to design and implement key pillars of the open banking system, including common rules and an accreditation framework for open banking participants.
Quick facts about Open Banking
Open banking enables consumers and small businesses to share their financial data with a broader range of financial service providers through secure online channels, in order to access new, innovative, consumer-centric financial services.
In 2018, in response to the growth of financial technology services and as part of efforts to strengthen and modernize the financial services sector, an Advisory Committee on Open Banking was tasked by the government to conduct a review into the merits of open banking.
On August 4, 2021, the final report of the Advisory Committee on Open Banking was released. It provides recommendations on how to modernize the Canadian financial services sector and implement a secure open banking system that gives Canadian consumers the confidence and convenience they are looking for in today’s economy.
Key responsibilities for the open banking lead
The open banking lead will engage stakeholders to develop an accreditation framework, a common set of rules, and technical standards for an open banking system.
The lead will also provide advice to the government for the future ongoing administration of a system of open banking.
The lead will report to the Deputy Minister of Finance.
The lead would be supported by a secretariat within the Department of Finance and supported by external experts, as required.