Competition Watchdog Recommends ‘Open Banking’ to Give Customers More Options

Canada’s Competition Bureau has recommended the federal government develop an open banking framework to improve customer service and boost competition in the banking sector. The Department of Finance should “swiftly adopt a consumer-driving banking framework,” the bureau said in a March 21 news release. The recommendation for “open banking” would allow customers to securely transfer financial information to different banks, making it easier for people to switch financial institutions. The framework would allow consumers access to budgeting or money management apps and enable them to pool different bank accounts and credit cards into one place. The recommendation would also allow Canadians more ways to strengthen credit scores, as lenders would be able to access individual banking data to look behind the customer’s current score. Consumers could then build their scores in different ways, such as providing reliable rent payments....