“Today with screen scraping, which again, millions and millions of Canadians use because there is no alternative, there’s really no rules around that,” he says.Despite the name, Vronces says open banking is not about “opening up the vault of data and flooding it into the market.” Conversely, he argues that open banking frameworks are more secure than today’s screen scraping standard, as it tightens regulations on how data sharing happens.
“Banks call all the shots right now with whom you can share your data, how you can share your data, what data you’re allowed to share, and what data you’re not.”The current setup boxes out smaller competitors and stifles innovation in the financial system, argues the Council of Canadian Innovators , a group representing high-growth tech companies in Canada.Story continues below advertisement
“Why can’t you Venmo in Canada?” asked Bednar, referring to the popular money transfer service in the U.S. “They can’t because of how we regulate our payment system.” For its part, the federal government agrees that moving forward on open banking is in the best interest of Canadians.“The establishment of an open banking system will help Canadian consumers and small businesses safely and efficiently access tools to help them improve their financial outcomes,” said Farrah-Lilia Kerkadi, press secretary for Associate Finance Minister Randy Boissonnault, in a statement to Global News Wednesday.
“Stifled competition and innovation in Canada’s banking sector is directly hitting the pocketbooks of everyday Canadians and negatively impacting the country’s long-term economic prosperity,” said CCI’s director of federal affairs Nick Schiavo in a statement to Global News.
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