TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) — Equifax Canada is strengthening its commitment to promoting a consent-based approach to open banking and educating Canadians about consumer-led banking by expanding its engagement with Financial Data Exchange . A member of FDX since 2020, Equifax Canada chief data officer Sandy Kyriakatos has been named to the nonprofit’s board of directors. FDX is dedicated to unifying the financial industry (FI) around a common set of open banking standards. As a non-FI member of FDX, Equifax has a unique ability to bring the industry together given its work with financial institutions and fintechs in Canada.
On August 4, 2021, the Department of Finance released the final report of the Advisory Committee on Open Banking, recommending that Canada move forward with open banking and implement it by January 2023. The system Open banking, a framework in which banks enable the authorized sharing of customer data with other institutions, promises to provide Canadians with richer and more inclusive banking experiences, but there is a daunting challenge.
“Most Canadians don’t know what open banking entails or how their banking information would be used,” Kyriakatos said. “FDX membership allows us to share global best practices in open banking, bridge the knowledge gap between consumers, and address any concerns about data sharing. This appointment to FDX is an opportunity for Equifax to continue its mission to help Canadians live the best of their finances by promoting a consent-based standard for data interoperability and Open Banking.
FDX Managing Director, Don Cardinal, said, “We are thrilled to have Equifax as our partner as we continue to make FDX relevant to federal and provincial needs in Canada – from security, user experience and data to tools/utilities – for all open banking services. /Participants in the open finance ecosystem.
What Canadians know about open banking
Equifax Canada and Leger Research conducted a national online survey which found that only 34% of Canadians understand that they can ask their financial institutions to share their banking information with other institutions. This was especially true among younger Canadians (under 35). Just over half say open banking is simply about being able to do business with any institution, while 44% say it’s about banks sharing information about victims of fraud.
“As an industry, we need to do a much better job of defining open banking, which will lead us to a simple mechanism that gives consumers transparency and control over how they access and use their financial information,” said said Kyriakatos. “Given the importance of data sharing to open banking, we believe adoption depends on improving awareness and education about how this framework could increase consumer choice and improve the financial results of Canadians.
“With better access to data in Canada, we can create more comprehensive credit scores, increase fraud prevention oversight, and foster financial inclusion.
About the exchange of financial data
Financial Data Exchange, LLC is a not-for-profit organization operating in the United States and Canada dedicated to unifying the financial industry around a common, interoperable, royalty-free standard for secure and convenient access for consumers and companies to their financial data. FDX empowers users through its commitment to the development, growth, and industry-wide adoption of the FDX API based on the principles of control, access, transparency, traceability, and security . Membership is open to financial institutions, fintech companies, financial data aggregators, consumer advocacy groups, payment networks and other industry stakeholders. FDX is an independent subsidiary of FS-ISAC. For more information and to join, visit www.financialdataexchange.org.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employers and government agencies make critical decisions with greater trust. Our unique blend of differentiated data, analytics and cloud technology generates insights to support decisions to move people forward. Headquartered in Atlanta and supported by more than 13,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia-Pacific region. For more information, visit Equifax.ca.