Most people think they see very little benefit from allowing firms to access data
A recent report highlighted Canada’s slower growth of fintechs compared to some international peers, citing regulatory challenges, but could caution around data sharing add to the problem?
With Canada also lagging some other countries for adoption of open banking the issue of sharing personal and financial data is a key issue that could significantly impact the success of technology-fuelled innovations in financial services and other sectors.
A recent report from Canada’s Digital Governance Council found that 71% of respondents reported high levels of concern about the privacy and security of their personal data. Older Canadians were more likely to be concerned including 80% of Boomers, while 53% of Gen Zs expressed concern.
The financial services sector appears to be in a better place for data usage than many others with banks in particular emerging as the organizations most trusted with personal data, albeit at only 51%. The sectors where trust is lowest in this regard include social media companies, online retailers, tech companies, and telecom companies.
Poll participants were most open to sharing their data in emergency response scenarios (75%) and health care scenarios (63%) but purchases saw the lowest level of willingness (35%).
Overall, Canadians are skeptical about the benefits that they can derive from sharing their personal data. Just 4% believe they and other consumers reap the lion’s share of benefits compared to 23% who think governments do and 73% think businesses do.
The survey, in collaboration with Hill & Knowlton, also found that between a third and 40% feel that they have no control over various aspects of personal data sharing and privacy.
Canada's Competition Bureau is among the bodies advocating for the adoption of an open banking framework to enhance competition in the financial sector, and the recent budget announcement indicating the advancement of open banking in Canada has been met with optimism from industry experts.
However, ultimately the success of open banking will rest with consumers and the industry’s ability to effectively reassure Canadians that their personal and financial data will be safe.
