Kirsten Fraser, director, financial services innovation at Finance Canada, told delegates at Open Banking Expo Canada that the Department of Finance team is working towards the Government’s 2025 target for consumer-driven banking to go live.
In a Fireside Chat with Eyal Sivan, general manager North America at Ozone API and chair of the Main Stage at the Expo, Fraser also noted that the target delivery date would be subject to factors such as the legislative calendar and a minority parliament.
Fraser told delegates that in the Department of Finance’s discussions with stakeholders taking place now, “we’re surfacing questions of a regulatory nature, so once legislation does pass, we’re able to hit the ground running and be informed by those views”.
She also addressed how Open Banking will be funded and the funding amounts announced in Budget 2024, which Sivan called “pretty modest”.
The government revealed in the federal budget that the Financial Consumer Agency of Canada (FCAC) will receive $1 million, while $4.1 million has been set aside for the Department of Finance.
Fraser told delegates at Open Banking Expo Canada that the amounts pledged in the budget were “not intended to be the extent of what the FCAC will receive for administration and oversight of the Act”.
The initial $1 million is “to provide some support to advance implementation and get started on a consumer education and awareness campaign”, as well as having time to “understand what the new mandate will look like and the resources needed”.
“The money is meant to fill the gap until a final decision is made about what is required to resource it appropriately,” Fraser said.
Sivan asked Fraser to clarify the distinction between the role of the FCAC and Department of Finance in overseeing consumer-driven banking.
She confirmed that the FCAC will be responsible for implementation, administration and oversight, while the Department of Finance will retain the policy lead, which means it will lead on “expansion of scope” and any “policy changes”.
“Open Banking has demonstrated itself to be bipartisan – why do you think this is?” Sivan asked Fraser.
She acknowledged there is “broad bipartisan support in Canada” which is “fundamentally being underpinned by consumers having the right to their data in ways that benefit them”.
Fraser added that “this other idea of accessibility of financial services – improved financial outcomes for consumers, I would say lawmakers across the globe can be aligned on that”.
