Digital transformation in the financial services sector in Canada has changed the way we expect to interact with our financial institutions and manage our personal and commercial finances. In many economies around the world, open banking has enabled Financial Data Portability (FDP). From mortgages and pensions to payment solutions, this open architecture removes legacy barriers and leads to a new-generation of financial solutions.
Open Finance is Open Banking 2.0. Both concepts are predicated on the idea that account holders should determine who can access their information and make payments on their behalf. However, Open Finance expands the scope of Open Banking. Specifically, it works to allow third parties to access a broader range of customer data from savings accounts, investments, pensions, mortgages, insurance and much more. In turn, that data can be used to create more personalized and intuitive financial products. In practice, Open Finance could help realize the full potential of Open Banking.