Canadian largest fintechs seek public support for open banking and payments modernization

Some of the largest fintech firms in Canada have banded together to launch a new campaign targeting the public.

The campaign aims to attract public support for introducing modernization to open banking and payments. The companies need the support of the public to convince the government to make this move, as they believe it will benefit everyone.

Some of the largest fintechs that have joined the campaign so far include industry group Fintechs Canada and EQ Bank, Wise, and Wealthsimple. The campaign itself was named Choose More, and it seeks to educate the public and businesses in Canada about the benefits of real-time payments, and open banking in general.

Choose More’s website states, “Canadians deserve banking that lets you keep more money in your pocket. It’s time to demand that the government upgrade Canada’s financial system.”

Canadian government is advancing too slowly

It is worth noting that the government has already been considering the creation of an open banking framework. It has been investigating the concept for three years, ever since the UK introduced it. The research has found that open banking makes it easier for people to access third-party financial services providers’ banking data, thus speeding up certain processes and opening up additional options.

However, while the bank is inching toward the framework on its one, many in the industry need to be more patient and motivated with the speed at which it progresses. At the same time, the bank did little to inform consumers of the process and its potential benefits, leaving the public largely oblivious, which is another issue Choose More has with the government.

A survey conducted by Deloitte earlier this year, in June, revealed that only 18% of participants were familiar with the very concept of open banking. The percentage of those between the ages of 18 and 34 has been the highest, sitting at 35%, which is still extremely low. Meanwhile, only 35% of Canadians said they are willing to share their data online. However, 45% said they would be comfortable sharing their information with the framework in place.

Choose More is spreading awareness on open banking

To speed things up, fintechs launched this campaign to make the consumers aware of what they are missing out on and, hopefully, generate enough pressure on the government to make the process faster. The campaign has explained to the public that open banking can save money by cutting fees through greater choice.

It is also important to note that the campaign is targeting Canada’s entire payment system. Back in June, Payments Canada stated that it would conduct a second review of the Real-Time Rail (RTR) payments system, but it pushed the deadline for publishing its findings.

Choose More knows what Canadians are missing out on because of the slow pace at which the government has been operating, claiming that payment modernization can provide faster payments at lower costs for both sending and receiving money. It also stressed that failing to implement it means that Canada will continue to fall behind the rest of the world.