This translation has been automatically generated and has not been verified for accuracy.Soheil Karkhanechi is founder and chief executive officer of Legalender, a litigation finance firm focused on financing plaintiffs in consumer and commercial cases.
An important segment of Canada’s technology industry is falling behind the rest of the world. The culprit? Federal politics and political manoeuvring by the big banks. At risk is not only the continued success of a key part of our technology industry, but also consumer access to better and more reasonably priced financial services.
Technology has already vastly improved the way we access financial services. Much of the innovation in the past few years has come from financial technology companies known as fintechs. These companies strive to use technology to better deliver financial services. Fintechs have been central to the recent resurgence of the Canadian technology sector, and a robust
to the competitiveness of both the technology and financial-services industries. But the next wave of fintech advances will only be possible in an “open banking” environment and Canada is already behind its global competitors in adopting such a system.that allows consumers and businesses to share their banking data and processes with third-party service providers using secure digital channels. For consumers, open banking holds the promise of greater access and better prices.
By analyzing and aggregating a consumer’s information, these companies can offer customized financial services that are not otherwise available or are only available at higher prices. For example, in an open-banking system, a shopper may be able to use a single app to monitor their entire financial circumstances, and receive live advice on financial or investment goals.
globebusiness Isn't part of the reason Canada has been able to be stable is our centralized banking? This open concept is why the US is so unstable, going in and out of recessions since the 80s. Our banking system is pretty decent as is.
globebusiness Banks will never let their industry open up. They yield too much power and wealth in Canada, always have. They were able to muscle their way into the Insurance industry, without any benefits to the consumer.