How to set up effective incentivization to scale open banking usage in Canada

When making purchases or carrying out daily banking tasks, consumers (individuals and small businesses) generate a stream of information based on their transactions. This financial transaction data is currently held and controlled by individual financial institutions. Open banking is a framework where consumers and businesses can authorize third party financial service providers to access their financial transaction data using secure online channels. The benefit to consumers is that it allows them to access new products and services that enable them to better manage their financial affairs. Open banking holds the potential to reduce costs, improve Canadians’ ability to manage financial services, and gain access to a wider range of services that the digital economy has to offer. Of course, the technical design of infrastructure and the required regulation to ensure successful implementation of open banking and security of consumers’ data are the first requisite of this service. However, achieving the benefits of open banking above all requires widespread adoption by individuals and businesses. This adoption needs consumers to change their habits and adopt new financial practices. In this study, we will investigate consumers’ adoption to open banking and find effective interventions to scale its usage in Canada.

Faculty Supervisor:

Frank Safayeni

Student:

Ahmad Tanehkar

Partner:

Interac Corp

Discipline:

Other

Sector:

Finance, insurance and business

University:

University of Waterloo