Speakers representing FDX, FDATA North America, League Data, NorthOne and National Bank of Canada discussed the necessity and implications of aligning Canada’s Open Banking standards with those of the US at Open Banking Expo Canada on June 11.
Mauricio Deutsch, senior vice president, banking and capital markets Canada at GFT, moderated the panel session, which he opened by emphasizing the potential benefits of interoperability between Canada and the US.
GFT’s Mauricio Deutsch
He pointed out that such a path could enhance consumer convenience and foster financial inclusion.
Carrie Forbes, chief executive officer of League Data, highlighted the importance of collaboration and observed that Canada, due to its smaller scale, often faces challenges in accessing technology and solutions that could be readily available through collaboration with US counterparts.
Forbes noted that, without interoperability, Canadian institutions might remain isolated, unable to fully leverage shared goals and technologies with their US counterparts.
Jason Chomik, Canadian director at FDX, talked about the technical feasibility of creating interoperable standards, noting that FDX already includes data elements for both Canada and the US.
He acknowledged the larger challenges of regulatory alignment but remained optimistic about the technical aspects being manageable.
Steve Boms, executive director at FDATA North America, detailed the significant regulatory differences between the two countries, highlighting the distinct approaches to data privacy and consumer protection.
Boms told delegates that achieving regulatory harmony would require substantial coordination and alignment, both within each country and across the border.
During the panel debate, Natacha Boudrias, lead Open Banking at National Bank of Canada, focused on the evolving landscape of data privacy and security.
She stressed the need for ethical practices and consumer consent, emphasizing that any framework must ensure the secure handling of data to gain consumer trust.
Eytan Bensoussan, NorthOne’s chief executive officer, highlighted the potential for Canadian businesses to expand into the US market, leveraging interoperable standards to simplify cross-border operations.
He also pointed out that many small businesses already expect interoperable systems due to their experiences with other sectors, like ecommerce.
The discussion also touched on the role of various stakeholders in fostering industry collaboration.
The panelists called for increased involvement from financial institutions, fintechs, government bodies, and educational institutions. They emphasized the importance of aligning these stakeholders to create a cohesive and efficient framework for Open Banking.
The panel concluded with a consensus on the need for an interoperable path between Canada and the US, despite the numerous challenges, calling for a consumer-centric approach, emphasizing that the ultimate goal of Open Banking should be to meet the needs of consumers and businesses.
