The Liberal government of Canada has missed its own deadline to overhaul how banks handle Canadians’ data, a promise that industry players say is impacting how Canadians manage their own money. The issue revolves around open banking, an approach that would allow Canadians to control their data, access credit and avoid costly fees. While the government promised to introduce open banking by early 2023, there is still no decision on how the system will look. Experts warn that Canada risks falling behind other countries that have already implemented open banking. Without open banking, consumers are being denied access to the benefits of a more efficient system that would allow them to more securely share their information with third parties or app developers. The status quo of screen scraping is more burdensome and comes with insecurities, says Andrew Graham, co-founder and CEO of Borrowell, a Toronto-based credit firm. Open banking also challenges industry heavyweights who currently dominate the financial system, stifling innovation and boxing out smaller competitors.
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