Last week CCUA’s Government Relations Team hosted the sixth and final episode of its CCUA-CGI open banking webinar series. The policy webinar entitled The Road to Open Finance explored how an open finance/data system can incorporate the insurance industry, wealth management industry, and other financial services domains, and the potential opportunities this system offers for the financial services landscape in its entirety.
The series finale was very insightful and provided attendees with valuable insights into the opportunities the open banking framework offers to those businesses in the financial services landscape. Below are the main highlights from The Road to Open Finance Webinar:
Three Takeaways From The Road to Open Finance Webinar
- Open finance expands the reach of consented data-sharing beyond banking. Open banking is just the initial step to open finance.
- In Canada, open banking will include banks, credit unions, and fintechs, and will look at consumer data, balance, and transaction data, product data, chequing and savings accounts, registered accounts, investment accounts, credit card accounts, and lending products.
- An open finance environment will bring an even greater ability to reduce friction through access and automation for personalized results. Examples of registered accounts in open finance include insurance, pensions, retail, and investment/wealth management funds. So this further expands the scope as, for example, a Canadian may have a TFSA with a non-credit union or bank.
- Open data/economy goes a step further than open finance and is a target state where the member can access their data from any data holder and share it with any service provider it chooses to use. Participants include health care, telco, agriculture, utilities, and transit companies to provide account information on automobiles (i.e., ownership, crash information), utility accounts (electricity, gas, water), and tax accounts (CRA, property, education) among others.
- How to move from ‘closed banking’ to ‘open’
- Launch and implement an effective and secure open banking framework
- Enable data-sharing across FIs and providers in different sectors
- Deliver hyper-contextualized, highly personalized services built upon data – an open economy with a universe of players spanning sectors.
In case you missed the session, a recording of the webinar is available: The Road to Open Finance
The presentation slides for this webinar are also available here