We are finally at the precipice of a new financial world in Canada. On August 4th, 2021, the Canadian fintech community collectively let out a sigh of relief when Canada’s Department of Finance Advisory Committee issued its final recommendations report.
Open Banking is here (finally) and set to launch in 2023.
In 2020 we often spoke to the Open Banking movement being alive and well in the Canadian landscape, and a year later, we are seeing the Open Banking wave crest. Financial services of all styles are starting to recognize the opportunities Open Banking will present, leaving no doubt financial companies can expect to expand their reach, target their services, and enhance a client’s experience.
While the official green light is a broad Canadian achievement and a welcome one at that, it is essential to note that Fintech companies around the globe continue to make great strides in the financial industry. Pushing the boundaries of traditional practices to shine a light on how consumer-driven finance can lead us onwards to 2023 and beyond.
“Consumer-driven finance, or open banking, is already part of Canadians’ lives. Many use digital services every day to manage their money, to budget for expenses, and to make investments.”Finance Minister Chrystia Freeland
As Open Banking gets pushed out of the shadows and into the future, we highlight some of VoPay’s favourite fintechs to keep your eyes on in 2022. As standouts in their respective industries, we want to acknowledge our fellow fintech alumni and commend their achievements that drive this momentum forward. We are excited to see what the future holds for these fintech class acts.
If nothing else, these past few years highlighted the value of getting “cash” in hand fast. We can expect Open Banking to catapult lenders into the future, altering the linear and point-in-time borrowing experience for small businesses and consumers alike. Imagine a world where lenders can offer ongoing real-time prequalification, near-instant access to funds and a streamlined loan experience. No need to imagine it. Thanks to these companies, that world is here.
Real-time tracking of every transaction, fund or account holder verification in an instant, before any information is submitted; this is just getting started. When we begin to add Open Banking to payment processing, expect to see greater transparency, improved payments reconciliation, reduced unauthorized payments, and overall customer satisfaction. The results, more cash on hand and more revenue. What’s not to embrace? Hats off to these PaaS companies paving the way for a faster, frictionless payments process.
When all the information you need is at your fingertips, with Open Banking, advisors can shift their attention from time-consuming tasks to delivering well-informed advice. When customers link their existing banking data, significant investment or retirement planning gaps will be unearthed. And voila… just like that, companies can deliver tailored financial solutions to customers. These organizations are the road map forward for client-centric financial planning.
Accounting departments worldwide are about to get more done when Open Banking finally arrives. The current payment processes are riddled with batch-based labour-intensive manual reconciliations and include the hidden and not-so-hidden costs of NSFs. With Open Banking comes more automation, lower processing costs and more ability to enhance the client experience. It kind of makes us ask, why did we wait so long, Canada? These companies show us how accountants can spend more time on valuable work and less on the time-consuming.