2021 Trend Almanac: Technologies and trends that will dominate the business and consumer landscape. Get instant access
The introduction of open banking in Canada will have a profound impact on consumers as banks, FinTechs, and other service providers start introducing innovative products and services based on open access to data.
We discuss open banking successes across the globe, the current state of open banking in Canada and what the future holds, and how banks and FinTechs should collaborate to drive home the advantage of open banking. Watch this exciting episode of our Tech Talk featuring Hans Tesselaar, Executive Director, BIAN, Fatema Pirone, Senior Director for Enterprise Innovation, CIBC, and Piyush Pati, Senior Director, Banking & Financial Services, Virtusa.
Open banking adoption is at different stages across the globe. It is driven by regulatory mandates in some regions, such as in the EU, UK, Canada, and Australia. In some others, encouraged by regulatory changes, open banking is being leveraged to promote financial inclusion in regions like South East Asia. Lastly, open banking adoption in countries like China and the USA is market-driven, encouraging innovation, competition, and cost reduction. The speed of adoption varies across these three buckets.
Fueled by global activity, regulators, incumbents, FinTechs, and banks are looking at open banking successes worldwide. Some of the key imperatives are around managing and mitigating related consumer protection, cybersecurity, privacy, and determining the role the government would play in enabling open banking. Other factors include interconnectivity, open everything, connectivity of products and services aimed at driving more value to consumers.
Finally, the key to open banking success in Canada and across the globe is to engage with consumers to bring them along the journey. No matter how transformative the data-driven solutions maybe, government bodies, banks, and financial institutions need to take appropriate steps to properly explain the workings of an open banking ecosystem and how consumers can benefit from this revolution.
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In Latin America, specifically Mexico, the ecosystem is gaining major momentum with the introduction of open banking regulations.