How Canadian banks can prepare for open banking

With open banking taking root around the world and Canada looking at following suit, Canadian banks can have a first-mover advantage given they’re already trusted custodians of customer data with strong brands. Banks are starting to evaluate the actions to take, including the following six steps:

Think now, think big
  • What are the most likely open banking scenarios from a regulatory perspective?
  • Examine potential partnership options and use cases you could tap into if you proactively adopted an open banking mindset that goes beyond what the regulations require.
  • Undertake a data-mapping exercise to determine where client data is housed across systems and see what information is available that fits with potential use cases.
Assess your capabilities
  • Develop potential strategic responses to the scenarios you came up with and assess the capabilities needed.
Adopt new ways of working
  • Recognize areas of non-core competence that you can address through partnerships.
  • Partner with FinTechs whenever needed to offer best-in-class services and experiences.
Invest in the future 
  • Continue efforts to reduce or remove reliance on aging infrastructure.
  • Build people and process capabilities to boost competitiveness.
  • Make sure you stay ahead of emerging data security and privacy issues to increase customer trust.
  • Review your security architecture.
  • Build appropriate controls for fraud monitoring, including solutions related to digital identity.
Pre-empt competition
  • Achieve market leadership through test cases and experimentation to close product or service gaps.
  • Compete on excellence by making sure you have top-notch products or services to support your strategy.
Stay the course and don’t slow down
  • Open banking is a reality, whether as a competitive opportunity or a regulatory requirement.
  • Choose a long-term business model that makes the most of your product or customer focus.

 

Contact us

Paula Pereira

Partner, Banking & Capital Markets, Consulting, PwC Canada

Tel: +1 416 941 8460

Ryan Leopold

Partner, National Banking & Capital Markets Assurance Leader, Toronto, PwC Canada

Tel: +1 416 869 2594

Sasan Parhizgari

Director, PwC Canada

Tel: +1 416 947 8903

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