Open banking in Canada: A new paradigm for financial services sector

Associate Ronak Shah spoke with Law Times for a piece on open banking in Canada, saying the “[federal] government is starting to basically join the chorus of the other countries that have already gotten on board.”

The open banking movement coincides with a consultation paper released by the federal finance department in January, in which it stressed the need to find a balance between a competitive financial sector that provides consumer choice, and privacy and security.

Ronak told the publication he sees open banking as a new paradigm in the financial services sector.

“I think we need to figure out what the right balance is and try to ensure that there’s protection in the innovation these financial institutions have . . . by creating intellectual property but also giving consumers the right over the data,” he said.

Counsel Molly Reynolds was also quoted in the piece, saying open banking is essentially “an extension of what is already happening.”

“There are smaller digital banks or lending organizations that have been leveraging technology to try to get to many of the same objectives as what’s being discussed in this consultation paper,” Molly said.

You can read Molly and Ronak’s full comments on Law Times.

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