This enactment imposes certain obligations on the Minister of Finance in relation to the implementation of open banking in Canada.

Preamble

Whereas financial health is an ongoing concern for most Canadians;

Whereas there is a growing acknowledgement around the world that consumers have a right to use and move their financial data in ways that benefit them;

Whereas consumer-led banking, also known as open banking, which is available in some jurisdictions, enables consumers to securely and efficiently transfer their financial data among financial institutions and accredited third-party service providers, gives consumers a broader picture of their finances and provides them access to other services that may help them to improve their financial outcomes;

Whereas, in 2018, the Minister of Finance established the Advisory Committee on Open Banking, which was tasked with considering whether open banking could provide meaningful benefits to Canadians with the highest regard for security, consumer privacy and financial stability;

Whereas, in carrying out its mandate, the Advisory Committee on Open Banking consulted with a broad range of stakeholders, including banks, consumers, civil society organizations representing small and medium-sized business owners and international policy makers in other jurisdictions;

Whereas, in 2021, the Advisory Committee on Open Banking delivered its final report, which included a comprehensive plan for implementing open banking in Canada and suggested that an open banking system could be operational by January 2023;

Whereas Parliament recognizes that open banking could increase competition and lower bank fees and interest rates for consumers and small and medium-sized businesses;

Whereas open banking could provide financially marginalized Canadians with access to low-cost, automated support to help them manage their finances;

Whereas open banking could give Canadians with a limited credit history, including newcomers to Canada, access to credit based on their financial transaction history;

Whereas, for small and medium-sized businesses, open banking could speed up loan adjudication and provide access to new forms of capital and to automated financial tools that could streamline the management of bills, invoices, payroll and taxes, which would reduce the complexity of managing a business;

Whereas, in 2022, in response to a recommendation of the Advisory Committee in its final report, the Government of Canada designated an open banking lead whose mandate was to develop, in consultation with industry, regulators and consumer representatives, a made-in-Canada framework based on the findings and recommendations contained in that report;

Whereas the open banking lead has concluded the consultations and designed a framework to guide the implementation of an open banking system;

And whereas Parliament considers that it is desirable that the Government of Canada demonstrate its commitment to addressing the concerns of Canadians for their financial health and move forward with the implementation of the open banking system;

Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: