Canada is preparing to launch ‘open banking.’ Here’s what that means

The experience with open banking so far suggests that the benefits are mostly exaggerated and that, while it does not necessarily increase the risk of fraud, it does not eliminate it either. It just shifts the dangers elsewhere.

The Canadian government is setting the stage to bring in what is termed “open banking.”

It is described as a “secure way” for customers to share their financial data with financial technology companies (fintechs or fintech apps). The holders of the account do not have to provide their online banking usernames and passwords. Instead, the data is shared by the customer’s bank with the fintech company, or app, through an online channel.

Open banking is often contrasted with what is called screen scraping, which is when the third party is provided with the online banking username and password, enabling them to log in directly to the bank account as if they were the customer.

Open banking has been adopted by 68 countries, including the United Kingdom and Australia. The U.S. Congress passed the necessary legislation to set it up in 2010, but it was not until last October that the Consumer Financial Protection Bureau (CFPB) issued a proposed rule necessary for implementation.

The experience with open banking so far suggests that the benefits are mostly exaggerated and that, while it does not necessarily increase the risk of fraud, it does not eliminate it either. It just shifts the dangers elsewhere.

The greatest peril is fraudulent account linking: unauthorized connections between customer accounts and third-party applications. This can be done by linking the victim’s financial account to an app controlled by the fraudster, allowing unauthorized access to the person’s funds. Or, the fraudster’s financial account can be linked to a victim’s third-party app, allowing scammers to transfer funds into their account. Substantial sums of money can be stolen before the victim becomes aware of the breach.

Such risks are commonplace in the digital banking environment. For instance, in Australia, according to the Australian Bureau of Statistics, credit card fraud affected 8.7 per cent of the population in 2022-23. The average amount stolen, however, was only $A200 and only 18 per cent had more than $A1000 taken. With open banking, if there is a breach, any sums stolen are likely to be much larger.

Neither is there any reason to think open banking is completely secure just because customers do not reveal their username and password. The Australian Banking Association warned that, after cyberattacks on the government medical insurer Medibank and telco Optus, “the engagement of a third party standing in the shoes of the customer … introduces a range of new risks for which banks may need to develop specific scam, fraud and cyber mitigation tools.”

According to research by financial advisory company Konsentus, the adoption of open banking has been strongest in Asia. In the U.S., customers have a strong attraction to credit cards and the rewards on offer. That is expected to represent a big barrier to take up. In Britain participation has “plateaued,” according to The Open Banking Impact Report (OBI report).

Open banking is supposedly more efficient. The fintech company Gocardless contends that: “bank-to-bank payments are fully integrated and use a digital pull-based mechanism, where the merchant requests payment. In contrast, manual bank payments or card payments require the customer to send the payment to the business. Bank-to-bank payments tend to have lower failure rates compared to credit/debit card methods. Thus, businesses spend less time chasing missed payments.”

Another more doubtful claim is that open banking will make things easier for lenders. Abhigyan Shrivastava, leader in banking and technology transformation for Bendigo and Adelaide Bank writes that open banking is: “set to have a significant impact on lending transformation in Australia… with increased competition, personalized lending products, and more efficient lending processes.”

There is little reason, however, to think that better exposure to borrowers’ data will make any difference to lending practices. It will still be a matter of borrowers being able to provide enough collateral to qualify for a loan and to demonstrate they have sufficient income to pay the interest. In other words, banking as usual.

What is most likely is that the benefits of the initiative will primarily go to the banks and financial technology companies. That these entities argue, unconvincingly, that open banking is more “customer-centric” rouses the suspicion that ordinary customers will ultimately gain little.

Related Topics:#DavidJames #LifeSiteNews #OpenBanking

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Liberal border bill could usher in cashless economy by outlawing cash payments

Published on June 7, 2025

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From LifeSiteNews

By Clare Marie Merkowsky

Bill C-2 has raised concerns from legal organizations that warn it could lead to a cashless economy in Canada by banning cash payments over $10,000.

The Liberals’ proposed border legislation may quietly usher in a cashless economy by banning cash payments.

On June 3, the Liberal Party introduced Bill C-2 to strengthen border security and outlaw cash payments over $10,000. Legal organizations have since warned that this is the first step to a cashless economy and digital ID system in Canada.

“Part 11 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to prohibit certain entities from accepting cash deposits from third parties and certain persons or entities from accepting cash payments, donations or deposits of $10,000 or more,” the legislation proposes.

While the bill purports to strengthen border security and restore Canada-U.S. relations, many have warned that government regulation of cash payments is a slippery slope.

In a June 4 X post, the Justice Centre for Constitutional Freedoms (JCCF) warned that “If Bill C-2 passes, it will become a Criminal Code offence for businesses, professionals, and charities to accept cash donations, deposits, or payments of $10,000 or more. Even if the $10,000 payment or donation is broken down into several smaller cash transactions, it will still be a crime for a business or charity to receive it.”

The JCCF pointed out that while cash payments of $10,000 are not common for Canadians, the government can easily reduce “the legal amount to $5,000, then $1,000, then $100, and eventually nothing.”

“Restricting the use of cash is a dangerous step towards tyranny and totalitarianism,” the organization warned. “Cash gives citizens privacy, autonomy, and freedom from surveillance by government and by banks, credit card companies, and other corporations.”

“If we cherish our privacy, we need to defend our freedom to choose cash, in the amount of our choosing,” it continued. “This includes, for example, our right to pay $10,000 cash for a car, or to donate $10,000 (or more) to a charity.”

“Law enforcement already has the tools to fight crime,” JCCF declared. “Perhaps they need a bigger budget to hire more people, or perhaps they need to use existing tools more effectively. In a free society, violating our right to use cash is not the answer.”

In winter 2022, the Liberal government, under former Prime Minister Justin Trudeau, froze the bank accounts of those who donated to the Freedom Convoy, which featured thousands of Canadians camping in front of Parliament to protest COVID mandates.

Similarly, Liberal Prime Minister Mark Carney’s move to restrict Canadians is hardly surprising considering his close ties to the World Economic Forum and push for digital currency.

In a 2021 article, the National Post noted that “since the advent of the COVID pandemic, Carney has been front and centre in the promotion of a political agenda known as the ‘Great Reset,’ or the ‘Green New Deal,’ or ‘Building Back Better.’

“Carney’s Brave New World will be one of severely constrained choice, less flying, less meat, more inconvenience and more poverty,” the outlet continued.

In light of Carney’s new leadership over Canadians, many are sounding alarm over his distinctly anti-freedom ideas.

Exposing Mark Carney:

“Should sex be up for sale” 😮

“Should there be a market for the right to have children?” 🤯 pic.twitter.com/Q4hftgGIMc

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Carney, whose ties to globalist groups have had Conservative Party leader Pierre Poilievre call him the World Economic Forum’s “golden boy”. He has also previously endorsed the carbon tax and even criticized Trudeau when the tax was  exempted from home heating oil in an effort to reduce costs for some Canadians.

Carney, who as reported by LifeSiteNews, has admitted he is an “elitist” and a “globalist.” Just recently, he criticized U.S. President Donald Trump for targeting woke ideology and has vowed to promote “inclusiveness” in Canada.

Carney also said that he is willing to use all government powers, including “emergency powers,” to enforce his energy plan.

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Canada Pension Plan becomes latest institution to drop carbon ‘net zero’ target

Published on May 31, 2025

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From LifeSiteNews

By Anthony Murdoch

Changes to the law require companies to more rigorously prove their environmental claims.

The investment group in charge of Canada’s governmental pension plan has ditched its “net zero” mandate, joining a growing list of major institutions doing the same.

According to the Canada Pension Plan (CPP) Investments’ latest annual report, the entity is no longer committed to carbon “net-zero” by 2050. The CPP’s ditching of the target comes after a number of major institutions, including the Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), National Bank of Canada, and the Canadian Imperial Bank of Commerce (CIBC), all made similar moves in recent months.

While ditching the net-zero effort, chief executive of CPP Investments John Graham maintained that it is still “really important to incorporate climate and incorporate sustainability” in its long-term investment portfolio.

The dropping of the “climate” target comes as recent changes to Canada’s Competition Act now mandate that companies prove any environmental claims they make, with Graham insinuating these changes were a factor in the decision.

“Recent legal developments in Canada have introduced, kind of, new considerations around how net-zero commitments are interpreted, so that’s caused us to change a little bit how we talk about it, but nothing’s changed on what we’re actually doing.”

Over the past decade, left-wing activists have used “net zero” and “environmental, social & governance” (ESG) standards to encourage major Canadian and U.S. corporations to take particular stands on political and cultural issues, notably in promotion of homosexuality, transgenderism, race relations, the environment, and abortion.

Outside of Canada, many major corporations have announced they are walking back DEI and other related policies. Some of the most notable include Lowe’s, Jack Daniel’s, and Harley Davidson. Other companies such as Disney, Target, and Bud Light have faced negative sales due to consumers fighting back and refusing to patronize the businesses.

Since taking power in 2015, the Liberal government, first under Justin Trudeau and now under Mark Carney, has continued to push a radical environmental agenda in line with those promoted by the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.” Part of this push includes the promotion of so called net-zero energy by as early as 2035.