![]() The market is currently delivering services that leverage and utilize the data that Canadians themselves produce. Through the review, the Committee has determined that while assessing the potential benefits and risks of a consumer-directed finance regime is a logical place to start, the reality is that data sharing by customers is already happening in the financial sector in a significant way. It has the potential to be of particular benefit to small business owners, consumers facing challenges in managing their finances, and those with limited or non-traditional credit histories. Consumer-directed finance could deliver tools that would support Canadians in improving their financial outcomes, by enabling them to use their information to secure better rates or products manage their small businesses more easily and access new tools that help improve their financial health. Canadians could benefit from new tools that would support them to better and more efficiently manage their finances. We know that financial health is a significant source of concern for all Canadians and that one in six Canadians struggle with their finances. To guide this review, the Department released a consultation paper, which posed three questions to Canadians and stakeholders on the matter of consumer-directed finance: are there meaningful benefits for Canadians, how should risks be mitigated and what is an appropriate role/course of action for government? The Advisory Committee on Open Banking (the Committee) was given a mandate to assess the merits of consumer-directed finance to determine if it could deliver benefits to Canadians. The Committee thanks the Minister for the opportunity to undertake the review and looks forward to continuing to support the Department in its consideration of consumer-directed finance. ![]() The report that follows provides an overview of what the Committee heard from stakeholders and learned from its examination of consumer-directed finance in other jurisdictions, formal recommendations and considerations for next steps. From the Committee's perspective, the level of engagement and collective understanding is indicative of the extent to which a collaborative approach to implementation is possible. The Committee was encouraged by the results of the consultations, which saw diverse groups of stakeholders examining consumer-directed finance through a public interest lens, finding areas of agreement and offering solutions to challenging policy considerations. To support the review the Department also undertook qualitative public opinion research, the results from which can be found on the Submissions for Consultation Paper on Open Banking. The Committee also engaged with international policy makers to understand best practices in other jurisdictions. Multi-stakeholder roundtables were held in Vancouver, Toronto and Montreal. ![]() Through the course of the review, the Committee and the Department of Finance have engaged, both through public roundtables and bilaterally, with hundreds of stakeholders.Ī broad range of stakeholders were consulted as part of the engagement process, from traditional financial sector stakeholders to Canadian consumers and civil society organizations representing small business owners, Canadians and, their families. Over a hundred written submissions were received in response to the consultation paper, "A Review into the Merits of Open Banking," which was released in January 2019. This report represents the findings and recommendations of the Committee following engagement with Canadians and stakeholders on open banking – a term this report will replace with consumer-directed finance. The Advisory Committee was tasked with considering whether open banking would provide meaningful benefits to Canadians and to deliver a report assessing the potential merits of open banking for Canada, with the highest regard for consumer privacy, security and financial stability. The Advisory Committee is supported by a Secretariat within the Department of Finance. ![]() Budget 2018 announced the Government's review into the merits of open banking and, as a first step in this process, the Minister of Finance appointed an Advisory Committee on Open Banking, to guide the review. ![]()
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