Open Banking is coming to Canada, and banks should ensure they are ready for it. As this article shows, failing to act could see banks disintermediated.
Although Accenture’s survey shows most Canadians aren’t yet interested in the benefits of Open Banking, a closer analysis of the data shows that younger people are much keener to share their financial data in exchange for benefits.
And as Open Banking becomes more familiar, increasing numbers of customers will seek out its benefits.
“Banks, therefore, should act now to draw up a strategic plan and decide where in the broader Open Banking ecosystem they want to position themselves,” says Andrew McFarlane, Canadian Payments Practice Lead - Global Open Banking.
The survey also shows that Canada’s banks are well respected and highly trusted, McFarlane says – plaudits they’ve earned by being cautious.
“And while it’s certainly the case that their approach paid off, and in particular during the 2008-09 global financial crisis, the question now is whether banks are sufficiently innovative,” he says.
“That is their biggest challenge—can they be innovative and offer new products and services, or will they stay cautious and be unable to face down fintechs and challenger banks that are waiting for the start of Open Banking?”