A report published Wednesday from the Competition Bureau shines a light on recent developments in Canada’s fintech sector and what to expect next.
The report, Canada’s Progress in Fintech, examines market and policy developments since the Bureau’s study on the fledgling fintech sector was published late last year. It highlights work being done in Canada to: open up the payments infrastructure, establish an open banking regime and collaborate and harmonize rules.
“These are key steps toward more competition and innovation in the fintech sector. It will be important to build on this momentum for the benefit of Canadian businesses and consumers,” the Bureau says in a news release.
Although there has been progress on a number of fronts, there is still work to be done. In particular, the Bureau says it will be watching the federal government’s commitment to examine open banking, and to modernize the financial sector framework.
Also Wednesday, Bill Morneau, federal finance minister, announced the launch of the Advisory Committee on Open Banking, which will be charged with reviewing the merits of open banking, and reporting back to the government.
Open banking aims to foster fintech innovation by allowing customers to share their banking data with fintech firms, enabling them to possibly develop innovative products and services.
The committee’s four members are: Colleen Johnston, most recently group head, direct channels, technology, marketing and corporate and public affairs, Toronto-Dominion Bank; François Lafortune, a partner of the venture capital arm of Montreal-based Power Financial Corp.; Kirsten Thompson, a partner at law firm Dentons Canada; and Ilse Treurnicht, former CEO of Toronto-based innovation hub MaRS.
“As technology continues to drive change in the financial sector, we must ensure that the needs of consumers — for more affordable and convenient services — are considered alongside the needs of the financial institutions that serve them. I congratulate the members of the advisory committee on their appointments, and look forward to the results of their consultations on open banking,” says Morneau in a statement.