New Framework prioritizes innovation and strong and consistent consumer protections
OTTAWA ON, July 3, 2024 /CNW/ - With the recent passing of Bill C-69, the Budget Implementation Act, 2024, the Financial Consumer Agency of Canada (FCAC) officially assumes the responsibility of overseeing, administering and enforcing Canada's Consumer-Driven Banking Framework.
Consumer-driven banking, also referred to as open banking, will enable consumers to securely access and share their financial data with financial technology companies (fintechs). For example, it will allow Canadians to safely access innovative products and services that can help them better manage their finances and improve their financial well-being. This may include accessing applications allowing them to build their credit by using transaction data, making it easier to get a loan, rent an apartment or qualify for a mortgage.
As a leader and innovator in financial consumer protection, FCAC welcomes its new role. As a regulator, FCAC already supervises the compliance of federally regulated financial entities, such as banks, with consumer protection measures set out in legislation, public commitments and codes of conduct.
FCAC is also mandated to strengthen the financial literacy of Canadians. It does this by implementing Canada's National Financial Literacy Strategy in collaboration with organizations across the financial ecosystem including financial service providers, consumer advocacy groups, and provincial and territorial regulators. The Agency also conducts research to better understand consumer needs and behaviours, including how financial decisions are made, and uses this research to inform policy recommendations, and to help consumers build financial resilience.
FCAC leads consumer awareness campaigns and provides authoritative information resources to help Canadians navigate the financial marketplace. The Agency is therefore well-positioned to oversee the Consumer-Driven Banking Framework and ensure that financial consumers are well-protected and well-informed.
With its expanded mandate, FCAC will oversee and promote a Consumer-Driven Banking Framework that supports innovation, protects consumers, and contributes to Canadians' financial well-being while advancing Canada's economic growth and international competitiveness.
Quote
"FCAC has a strong track record in consumer protection and the supervision of federally regulated financial institutions. The Agency has also led multiple consumer awareness campaigns to help Canadians navigate an increasingly digital financial marketplace. The evolution of our mandate over the past 23 years positions us to effectively oversee and promote an innovative and competitive framework that benefits all parties."
Werner Liedtke, Interim Commissioner, Financial Consumer Agency of Canada
Quick Facts
- In June 2023, FCAC published a report on the results of its public opinion research into Canadians' awareness and understanding of open banking. The report's findings provided evidence that strong and consistent consumer protections and awareness will be essential to build trust, understanding and interest in consumer-driven banking among Canadians.
- As part of the $1 million in funding allocated to FCAC in the 2024 federal budget, the Agency will develop a consumer awareness campaign to inform Canadians about the new Consumer-Driven Banking Framework.
Associated links
- Budget 2024: Canada's Consumer-Driven Banking Framework
- FCAC's consumer information page on open banking
- Open Banking and Consumer Protection: Canadians' Awareness and Expectations
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SOURCE Financial Consumer Agency of Canada
Contacts: Media Relations, Financial Consumer Agency of Canada, 343-999-1450, [email protected]
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