Open banking is no longer optional

Open banking is no longer optional

Open banking is no longer optional

Canadian consumers increasingly prefer a banking and borrowing environment that would grant them greater control and security over their data managed by financial institutions, according to PwC Canada’s Canadian Banks 2019: Open banking is coming report.

“Customer expectations are evolving rapidly and they are looking for a one-stop-shop where they can find all their financial information,” PwC Canada national banking and capital markets leader Diane Kazarian said.

“Banks could be among the biggest winners of open banking if they seize the opportunities it brings to create a better customer experience.”

It’s not just consumers that would benefit, the PwC Canada report added, as lenders and other financial institutions will also enjoy the advantages of greater operational efficiency brought about by these innovations.

“It also has the potential to reduce risks, such as fraud and money laundering, as sharing data between institutions will make it easier to spot anomalies,” the analysis noted.

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Most importantly, open banking will help early adopters establish themselves far more firmly in the eyes of a public increasingly sceptical about the financial sector’s ability to meet the needs of a fast-paced, interconnected world.

“Financial institutions who get ahead of the issue now will be in the best position to get an early start on their plans and strategies as well as help shape the future of Canadian banking,” PwC Canada banking consulting leader Paula Pereira explained.

“Leveraging their strong customer trust and combining it with the right innovation, open banking will position the Canadian banks for success in meeting customers evolving needs for digital interactions and greater control over their data.”