Ottawa, Canada – The Financial Consumer Agency of Canada (FCAC) has officially assumed the responsibility of overseeing, administering, and enforcing Canada’s Consumer-Driven Banking Framework, following the recent passage of Bill C-69, the Budget Implementation Act, 2024.
This framework, also known as open banking, empowers Canadians to securely share their financial data with financial technology companies (fintechs). This paves the way for innovative financial products and services designed to help Canadians better manage their finances and improve their overall financial well-being. Examples include applications that leverage transaction data to help build credit scores, potentially simplifying loan approvals, apartment rentals, and mortgage qualifications.
FCAC Well-Positioned for Open Banking Oversight
FCAC welcomes its expanded role, leveraging its existing experience as a leader and innovator in financial consumer protection. As a regulator, it has a proven track record of supervising federally regulated financial institutions (e.g., banks) regarding consumer protection measures outlined in legislation, public commitments, and codes of conduct.
The agency further strengthens Canadians’ financial literacy through implementing Canada’s National Financial Literacy Strategy. This collaboration involves organizations across the financial ecosystem, including financial service providers, consumer advocacy groups, and provincial and territorial regulators. Additionally, FCAC conducts research to understand consumer needs and behaviors around financial decision-making. This research informs policy recommendations and helps Canadians build financial resilience.
FCAC’s expertise in consumer awareness campaigns and providing authoritative information resources uniquely positions them to oversee the Consumer-Driven Banking Framework. The agency will work to ensure financial consumers are well-informed and protected within this new framework.
Balancing Innovation with Consumer Protection
FCAC’s expanded mandate is designed to promote a Consumer-Driven Banking Framework that fosters innovation, protects consumers, and contributes to Canadians’ financial well-being. This framework will undoubtedly contribute to Canada’s economic growth and international competitiveness.
“FCAC boasts a strong track record in consumer protection and supervising financial institutions,” stated Werner Liedtke, Interim Commissioner of the Financial Consumer Agency of Canada. “We have also led multiple consumer awareness campaigns to empower Canadians in the digital financial landscape. Our evolving mandate positions us effectively to oversee and promote an innovative and competitive framework that benefits all parties involved.”
