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
Partner, Banking & Capital Markets Assurance Leader, Financial Risk Management Leader, PwC Canada
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