Metrics Monthly | February 2020 | AU Edition

Canada puts security at the top of its Open Banking list Open Banking news

Ahead of the second phase of its Open Banking review, Canada is focussing on data security. An advisory committee looking at the feasibility of Open Banking in Canada, recently announced plans to turn its attention to ensuring consumers can share their personal financial data safely and securely. The key question the committee will raise is: how will regulators manage data security and privacy risks?

Established by the Department of Finance Canada in 2018, the committee aims to investigate whether the country should follow the UK’s lead in making it easier for banking data to be shared with third party financial services. The federal government hasn’t formally approved Open Banking in Canada, but many Canadians are already sharing their data with third parties, so ques- tions surrounding security and data protection are at the forefront of the review. With Open Banking already prevalent in the UK and several other

countries across the world, advantag- es of the initiative include being able to provide a more accurate snapshot of a finance applicant’s affordability by allowing providers to easily view bank statement data through revolutionary new platforms such as LendingMetrics’ OpenBankVision (OBV) . According to the committee, ‘the poten- tial for consumer-directed finance to deliver meaningful benefits to Cana- dians is evident’, but how and when Canada joins the Open Banking band- wagon is still undecided.

Only 60% of SMEs are aware of Open Banking possibilities

A new report has revealed that only 60% of UK small businesses know about Open Banking and the huge opportunities that can potentially come with it.

The report - by Intuit Quickbooks - looks at the opportunities that Open Banking can bring to small business- es in the UK but reveals that only three fifths of SME decision makers are aware of the differences the initiative could make. Vice President of Intuit QuickBooks, Chris Evans said: ‘The Open Banking revolution will empower the small business owners that want to do things differently and embrace new and better ways of working’.

The report also identified three trends that Open Banking would bring, such as better data intelligence, hyper-con- venience and more control over data ownership. The potential for a custo- misable approach to financial services will see SMEs being able to tailor their products to suit their needs and could allow small businesses to access the best financial products in order to grow faster.

04 | Metrics Monthly

February 2020 | AU Edition

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