Key industry leaders from Innova Solutions, CIBC, Raidiam, Mastercard and Scotiabank debated the transformative potential and inherent challenges of transitioning from Open Banking to Open Finance, at Open Banking Expo Canada in Toronto.
The panel session, ‘Pushing the Narrative Beyond Open Banking: Next step Open Finance’ was moderated by Sean McCarthy, Financial Services Industry Leader at AWS on the Open Finance Stage.
Shruti Awasthi, director of Open Banking Strategy at CIBC, emphasized the potential of Open Finance to provide personalized financial advice and promote financial inclusion, particularly for underbanked populations.
Awasthi said that while Open Banking could significantly benefit consumers, the industry must prioritize transparent data practices and robust consent management to maintain trust.
Stephanie Zee, vice president and global head of enterprise payments risk at Scotiabank, brought a risk-focused perspective, stressing the importance of understanding the increased exposure to cyber threats and the need for comprehensive consumer education.
Zee pointed out that the rapid pace of data transactions necessitates advanced authentication methods and continuous monitoring to prevent fraud and ensure compliance.
The importance of innovation at every stage of Open Finance implementation was highlighted by Swati Dublish, vice president of BFS solutions at Innova Solutions.
She called for a balanced approach where compliance, customized services, and embedded finance solutions work together to create a seamless experience for consumers. Dublish emphasized the role of alternate credit scoring and tailored financial products in fostering financial inclusion.
Barry O’Donohoe, co-founder and chief executive officer of Raidiam, shared insights from global markets, underscoring the need for strong standards and a collaborative approach to Open Finance.
He cited examples from the UK, Brazil, and the Middle East, where standardized frameworks have successfully facilitated data sharing and innovation. O’Donohoe stressed that clear regulatory guidance and consumer education are crucial for building trust and encouraging adoption.
Craig Reiff, vice president, consumer products and solutions at Mastercard, focused on the consumer experience, highlighting the importance of making data and insights easily accessible and actionable.
He said that innovation should enhance user experiences, making financial services more intuitive and integrated into everyday life. Reiff also pointed out the need for collaboration between established financial institutions and fintechs to drive innovation and meet diverse consumer needs.
Throughout the discussion, the panelists acknowledged the challenges associated with Open Finance, including regulatory compliance, data privacy, and cybersecurity.
As the session wrapped up, the speakers encouraged ongoing dialogue and cooperation among industry stakeholders to navigate the evolving landscape of Open Finance.
