New Framework prioritizes innovation and strong and consistent
consumer protections
OTTAWA ON, July 3, 2024
/CNW/ - With the recent passing of Bill C-69, the Budget
Implementation Act, 2024, the Financial Consumer Agency of
Canada (FCAC) officially assumes
the responsibility of overseeing, administering and enforcing
Canada's Consumer-Driven Banking
Framework.
Consumer-driven banking, also referred to as open banking, will
enable consumers to securely access and share their financial data
with financial technology companies (fintechs). For example, it
will allow Canadians to safely access innovative products and
services that can help them better manage their finances and
improve their financial well-being. This may include accessing
applications allowing them to build their credit by using
transaction data, making it easier to get a loan, rent an apartment
or qualify for a mortgage.
As a leader and innovator in financial consumer protection, FCAC
welcomes its new role. As a regulator, FCAC already supervises the
compliance of federally regulated financial entities, such as
banks, with consumer protection measures set out in legislation,
public commitments and codes of conduct.
FCAC is also mandated to strengthen the financial literacy of
Canadians. It does this by implementing Canada's National Financial Literacy Strategy
in collaboration with organizations across the financial ecosystem
including financial service providers, consumer advocacy groups,
and provincial and territorial regulators. The Agency also conducts
research to better understand consumer needs and behaviours,
including how financial decisions are made, and uses this research
to inform policy recommendations, and to help consumers build
financial resilience.
FCAC leads consumer awareness campaigns and provides
authoritative information resources to help Canadians navigate the
financial marketplace. The Agency is therefore well-positioned to
oversee the Consumer-Driven Banking Framework and ensure that
financial consumers are well-protected and well-informed.
With its expanded mandate, FCAC will oversee and promote a
Consumer-Driven Banking Framework that supports innovation,
protects consumers, and contributes to Canadians' financial
well-being while advancing Canada's economic growth and international
competitiveness.
Quote
"FCAC has a strong track record in consumer protection and the
supervision of federally regulated financial institutions. The
Agency has also led multiple consumer awareness campaigns to help
Canadians navigate an increasingly digital financial marketplace.
The evolution of our mandate over the past 23 years positions us to
effectively oversee and promote an innovative and competitive
framework that benefits all parties."
Werner Liedtke, Interim
Commissioner, Financial Consumer Agency of Canada
Quick Facts
- In June 2023, FCAC published a
report on the results of its public opinion research into
Canadians' awareness and understanding of open banking. The
report's findings provided evidence that strong and consistent
consumer protections and awareness will be essential to build
trust, understanding and interest in consumer-driven banking among
Canadians.
- As part of the $1 million in
funding allocated to FCAC in the 2024 federal budget, the Agency
will develop a consumer awareness campaign to inform Canadians
about the new Consumer-Driven Banking Framework.
Associated links
- Budget 2024: Canada's
Consumer-Driven Banking Framework
- FCAC's consumer information page on open banking
- Open Banking and Consumer Protection: Canadians' Awareness and
Expectations
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SOURCE Financial Consumer Agency of Canada