Change is in the works that will give Canadian consumers and businesses significantly more control over their financial data, in what’s known as open banking.
Open banking works by giving consumers the option to share their banking data with other firms. The most common use is granting access to budgeting or money management apps and companies, so that a customer can pool different bank accounts and credit cards into one place.
Ah yes, finally what we’ve been missing in our financial system! 🤭
That was my thinking 10 years ago. Today I wouldn’t want anything but heavily regulated banks to touch my financial information. Even if some third party is carrying the responsibility for fraud. Having worked at both small and large tech companies as well as one of the big five, I have very little faith in some random tech limited liability to be able to pay up if something bad happens. That’s not to say I’m super confident in the banks either, just that they have way more money, are pressed hard to do infosec and have government backing if and when shit hits the fan. It’s possible that the gov’t would require some hefty bags of money and liability guarantees from the third parties to allow them to participate in the new system which would could make things better. Now that I think about it, I bet the big five have made sure the conditions are as onerous as possible in order to reduce any actual competition as much as possible. :D
I have very little faith in some random tech limited liability to be able to pay up if something bad happens. That’s not to say I’m super confident in the banks either, just that they have way more money, are pressed hard to do infosec and have government backing if and when shit hits the fan.
Agreed, peering behind the veil of any organization will probably result in a loss of confidence. And to be fair, I do have concerns about this ultimately being 100% private and secure, but I’m mindful that perfection shouldnt be the enemy of progress. I have confidence that there is a relatively safe way to implement this. We’re not the first in the world to do it, and thankfully we can look to other jurisdictions to see where the risks are.
Now that I think about it, I bet the big five have probably made sure the conditions are as onerous as possible in order to reduce any actual competition as much as possible. :D
They’ll undoubtedly speak with banks when the legislation passes and regulations are being drafted, and a part of me hopes that the big dinosaur institutions we have realize deep down that they need to enter the modern world.
Banks are competition in the sense that they have competing interests, but not in the sense that are offering a comparable product. If my bank was actually interested in building an app that would help me wrangle and take control of my spending habits, they would have already built it with a couple devs like all these other apps popping up.
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That was my thinking 10 years ago. Today I wouldn’t want anything but heavily regulated banks to touch my financial information. Even if some third party is carrying the responsibility for fraud. Having worked at both small and large tech companies as well as one of the big five, I have very little faith in some random tech limited liability to be able to pay up if something bad happens. That’s not to say I’m super confident in the banks either, just that they have way more money, are pressed hard to do infosec and have government backing if and when shit hits the fan. It’s possible that the gov’t would require some hefty bags of money and liability guarantees from the third parties to allow them to participate in the new system which would could make things better. Now that I think about it, I bet the big five have made sure the conditions are as onerous as possible in order to reduce any actual competition as much as possible. :D
Agreed, peering behind the veil of any organization will probably result in a loss of confidence. And to be fair, I do have concerns about this ultimately being 100% private and secure, but I’m mindful that perfection shouldnt be the enemy of progress. I have confidence that there is a relatively safe way to implement this. We’re not the first in the world to do it, and thankfully we can look to other jurisdictions to see where the risks are.
They’ll undoubtedly speak with banks when the legislation passes and regulations are being drafted, and a part of me hopes that the big dinosaur institutions we have realize deep down that they need to enter the modern world.
Banks are competition in the sense that they have competing interests, but not in the sense that are offering a comparable product. If my bank was actually interested in building an app that would help me wrangle and take control of my spending habits, they would have already built it with a couple devs like all these other apps popping up.