A long-awaited change to Canadian banking is coming. What to know - National | Globalnews.ca
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Change is in the works that will give Canadian consumers and businesses significantly more control over their financial data, in what’s known as open banking.

Open banking works by giving consumers the option to share their banking data with other firms. The most common use is granting access to budgeting or money management apps and companies, so that a customer can pool different bank accounts and credit cards into one place.

Ah yes, finally what we’ve been missing in our financial system! 🤭

  • howrar@lemmy.ca
    13·
    8 months ago

    On one hand, I’m excited for the possibility of a completely self-hosted and local Mint alternative. On the other hand, this bit is concerning:

    One of the biggest areas of growth is in credit assessments. Under open banking, lenders could directly access an individual’s banking data, so they can look beyond credit scores. Consumers can also use it to build their credit scores, for example by proving reliable rent payments.

    If this comes to fruition, it’ll likely become mandatory for everyone to provide this data when applying for loans of any kind or to rent some place. Hopefully, they’ll have something set up so that you can share specific transactions instead of having to share everything.