The Canadian Banking System is set to be radicalized by an open banking framework

BY SIMONE J. SMITH

“It’s about having that fairer, more inclusive, more open society.  It drives financial inclusion; it’s democratizing data.” Helen Child (Founder of Open Banking Excellence. Open Society)

A long-promised revolution in banking is headed to Canada, but you might not notice when it arrives.

Data. That will be worth more than gold as we move forward with a cashless society. There is no easier way to control the masses than to control their access to money, their ability to buy, trade, and freely move about.

The Canadian banking system is set to be radicalized by an open banking framework. Evangelists for the open banking shift underway globally praise it as a way to: boost competition, dramatically shift how payments are made, and overall move to what they call a more people-oriented financial system.

Proponents are framing this as a way for banks to easily share information and access user data. The truth of the matter is that this is an opportunity to merge social standings with banking to provide the government complete control over our finances.

The organization Open Banking Excellence, a World Bank partner that originated in the UK, claims that it will host all of a bank’s relevant needs in one place. The organization, which has reached 40 countries, aims to create exceptional platforms and content that promotes: knowledge sharing, new thinking, and partnerships within the industry – catalyzing the adoption of Open Finance and Data for better financial inclusion worldwide.

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. Other emerging uses include simpler payments, automated accounting, and business finance management.

While there’s potential to shake up the current system, some are skeptical as to how much, and how quickly any change might happen. Even with safeguards in place to make it secure, it will likely take a lot of work to convince Canadians to trust the system.

Open Banking users can be vulnerable to: data breaches, cybercrime and fraud when the regulatory framework fails to address and prepare for these issues. Open Banking APIs involve sharing sensitive and personal information, such as: account details, balances, transactions, preferences, and identity, with multiple third-party providers. This increases the exposure and vulnerability of the data to potential breaches, fraud, or misuse.

Even in the U.K. where it was pioneered in 2018, only about 11 per cent of British consumers were using open banking as of last June, according to Open Banking Ltd., tasked with implementing the system in the country.

Canada is one of many nations hoping to use unofficial social scores to control the masses. All of these actions are setting the stage for how CBDC will operate, a collective network containing everyone’s personal data and accounts. Governments have already begun debanking individuals and these steps will make it increasingly easier to force the masses to bow down and relinquish all control to the almighty government.