Saba Shariff on the Revolutionary Impact of Open Banking

Exclusive Early Preview. Available on all Platforms April 24th, 2024.

Open banking allows consumers to access their financial data directly from banks in a secure way. It eliminates the need for aggregators that scrape data from online banking systems. Canada is considering a hybrid open banking system that combines market-led and regulatory approaches. The benefits of open banking for businesses include better accounts receivable and payable activities, easier access to credit, and frictionless payments.

Open banking is the ability for consumers to access their financial data, their transaction data directly from banks in a more secure way than is traditionally done

The main challenges for open banking implementation in Canada are the lack of consumer demand and the complexity of building a global network. Symcor, as an intermediary, helps banks and financial institutions make their data available securely and efficiently. Open banking should have standards for consent flow and technical standards to ensure consistency and trust. Accreditation and validation should be required for data recipients, with tiered levels based on privacy processes, security, and corporate structure.

Symcor helps banks and financial institutions be ready for open banking by providing APIs, infrastructure, consent modules, and operational support.

Existing financial institutions are already subject to obligations and can access data without accreditation. Standards should also extend to APIs to ensure consistency and security. Collaboration is important in open banking, as it is a greater good that benefits all consumers. Competition should focus on areas that are not competitive differentiators.

Available on all Platforms April 24, 2024.

Takeaways

• Open banking allows consumers to access their financial data securely and conveniently.

• Canada is considering a hybrid open banking system that combines market-led and regulatory approaches.

• Open banking benefits businesses by improving accounts receivable and payable activities, access to credit, and payments.

• The main challenges for open banking implementation in Canada are the lack of consumer demand and the complexity of building a global network.

• Symcor serves as an intermediary, helping banks and financial institutions make their data available securely and efficiently. Open banking should have standards for consent flow and technical standards to ensure consistency and trust.

• Accreditation and validation should be required for data recipients, with tiered levels based on privacy processes, security, and corporate structure.

• Existing financial institutions are already subject to obligations and can access data without accreditation.

• Standards should also extend to APIs to ensure consistency and security.

• Collaboration is important in open banking, as it is a greater good that benefits all consumers.

• Competition should focus on areas that are not competitive differentiators.