Kirsten Fraser, the Director of Financial Services Innovation at Finance Canada, recently delivered a speech at the Open Banking Expo Canada regarding the Government’s plan for consumer-driven banking to be operational by 2025. In a Fireside Chat with Eyal Sivan, the General Manager of North America at Ozone API and Chair of the Main Stage at the Expo, Fraser indicated that the delivery date would be influenced by the legislative calendar and the presence of a minority parliament.
In her presentation to the delegates, Fraser discussed the ongoing consultations with stakeholders at the Department of Finance. She stressed the importance of addressing regulatory questions to ensure well-informed decision-making once the legislation is enacted. Additionally, she touched upon the funding for Open Banking, which received modest allocations in Budget 2024.
The federal budget disclosed that the Financial Consumer Agency of Canada (FCAC) is slated to receive £1 million, while £4.1 million has been earmarked for the Department of Finance. Fraser reassured the delegates that these figures were not meant to be the limit of the FCAC’s funding for overseeing the Act. The initial funds are intended to support implementation, initiate consumer education and awareness campaigns, while allowing for a better understanding of the resources needed for the new mandate.
When questioned about the roles of the FCAC and the Department of Finance in overseeing consumer-driven banking, Fraser explained that the FCAC would lead implementation, administration, and oversight, while the Department of Finance would maintain the policy lead, focusing on the expansion of scope and any policy changes.
Sivan also inquired about the bipartisan support for Open Banking, to which Fraser acknowledged the broad bipartisan backing in Canada. She highlighted the fundamental principles of consumer rights to their data and improved accessibility to financial services, which resonates with lawmakers globally.
Overall, Fraser’s insights at the Open Banking Expo illuminated the Government’s progress towards the 2025 target for consumer-driven banking and the collaborative efforts between the Department of Finance and stakeholders to ensure a seamless and effective transition to Open Banking in Canada.