QUESTION PERIOD — Ministry of Rural Economic Development
Open Banking
December 1, 2022
Welcome to the Senate, minister. You know that 40% of Canadians live in places with fewer than 100,000 people, and rural communities are too often underserved by our financial system. I will build on Senator Moncion’s question.
This is an especially alarming problem because banks continue to close branches in small and remote communities, restricting the ability of people to continue to live and operate their businesses. Finance Canada is in the process of designing and implementing an open banking regime. I have to believe that this can provide hope to our underserved rural communities. To what extent is open banking being considered as a complimentary tool to help address this worrying problem that is undermining livelihoods and economic potential in rural Canada?
Thank you so much for that question, my friend. You know just as well as I do that the financial sector is becoming increasingly digitalized, and we have to make sure that the standards are modernized to ensure that every part of Canada enjoys a strong, stable and innovative financial sector.
We also have to make sure and realize that for every Canadian, no matter where they live, the financial sector is globally competitive, promotes consumer choice and contributes to economic growth. That is why I was delighted when our government launched the Advisory Committee on Open Banking. I am sure that you know that the lead on that is Abraham Tachjian, who has done phenomenal work with stakeholders, consumer organizations and regulators. The four pillars of the committee’s report is on accreditation, liability, privacy and security.
The government is reviewing the committee’s recommendations and developing the next steps to move forward. I know that you will play an active role in that along the way, sir.
