We Support Open Banking

The democratization of personal banking data while maintaining the highest level of security means happier consumers. Our industry leading NPS (Net Promoter Score) rating supports our advocacy for consumers owning their financial data, not the bank.

We Support Open Banking

The democratization of personal banking data while maintaining the highest level of security means happier consumers. Our industry leading NPS (Net Promoter Score) rating supports our advocacy for consumers owning their financial data, not the bank.

The Benefits

There are numerous benefits to Open Banking. Not being driven by a closed ecosystem/closed banking monopoly, which means consumers aren’t restricted accessing the resources they need. Plus, in the open banking era, you’re linked into alternative sources of value, consumers can get the help they need in a streamlined manner when going through challenging financial times.

Another benefit is that banks can migrate the risk over to fintech companies and can get their customers back once they’re back on their feet (e.g. Progressa). Even if it’s not a challenging time, fintechs can provide more diverse financial services and advice to serve the consumer better.

The Benefits

There are numerous benefits to Open Banking. Not being driven by a closed ecosystem/closed banking monopoly, which means consumers aren’t restricted accessing the resources they need. Plus, in the open banking era, you’re linked into alternative sources of value, consumers can get the help they need in a streamlined manner when going through challenging financial times.

Another benefit is that banks can migrate the risk over to fintech companies and can get their customers back once they’re back on their feet (e.g. Progressa). Even if it’s not a challenging time, fintechs can provide more diverse financial services and advice to serve the consumer better.

Risks & Mitigation

With Open Banking there needs to be an assurance for the protection of customer data, and stringent compliance standards would have to be implemented along with regular compliance verification (e.g. PCI Compliance & Canadian Lending Association).

Any form of a security breach or misuse of data could significantly harm the banks’ brand reputation and confidence they currently hold, which would instantly jeopardize the program.

With all this in mind, the Government would need to play a leadership role to mandate and enforce standards to create a unified vision.

Risks & Mitigation

With Open Banking there needs to be an assurance for the protection of customer data, and stringent compliance standards would have to be implemented along with regular compliance verification (e.g. PCI Compliance & Canadian Lending Association).

Any form of a security breach or misuse of data could significantly harm the banks’ brand reputation and confidence they currently hold, which would instantly jeopardize the program.

With all this in mind, the Government would need to play a leadership role to mandate and enforce standards to create a unified vision.

It’s Already Here!

Introducing open banking would position us as a global leader alongside the European Union and UK. PSD2 (Payment Services Directive 2) arrived in Europe last January, forcing European banks’ to open up their API’s to fintech and other financial companies.

Some Inspiration: The Airline Industry

Travellers historically were required to contact incumbent airline companies directly in order to book or manage reservations, check availability, check in, and check arrival times. Modern standards in our airline industry placed the customers in control and enabled customers to decide what, when, where, and how they wished to consume airline services. This amounted to expanded and improved services for the would-be travellers.

The modernization of the travel industry allowed for open functionality through secure APIs. This re-visioning of the industry enabled customers and third-party apps to perform most, if not all of the travel functions, without the need to ever contact the airline through slow, analogue channels.

Source: Canadian Lending Association

It’s Already Here!

Introducing open banking would position us as a global leader alongside the European Union and UK. PSD2 (Payment Services Directive 2) arrived in Europe last January, forcing European banks’ to open up their API’s to fintech and other financial companies.

Some Inspiration: The Airline Industry

Travellers historically were required to contact incumbent airline companies directly in order to book or manage reservations, check availability, check in, and check arrival times. Modern standards in our airline industry placed the customers in control and enabled customers to decide what, when, where, and how they wished to consume airline services. This amounted to expanded and improved services for the would-be travellers.

The modernization of the travel industry allowed for open functionality through secure APIs. This re-visioning of the industry enabled customers and third-party apps to perform most, if not all of the travel functions, without the need to ever contact the airline through slow, analogue channels.

Source: Canadian Lending Association

Canadian Open Banking Opportunity Index Ranking

Overall

What is the overall opportunity?

Regulatory Environment

How conductive is the regulatory environment?

Consumer Adoption

What is the potential for consumers to adopt?

Consumer Sentiment

How do consumers feel about Open Banking?

Source: EY Canada

Have a question about Open Banking?Contact Progressa

Have a question about Open Banking?