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Open Banking

Open Banking Offers New Opportunities for Small and Mid-Sized Businesses


By Don Coulter
December 10, 2019

Are you the owner of a small or mid-sized business? If so, the advent of open banking in Canada (hopefully sooner rather than later) is sure to change the way you do business—for the better.

Open banking enables consumers and businesses to authorize third parties to access their bank account data to collect account information and/or initiate payments. It is already launched in the EU, UK and other countries.

Open banking will provide businesses and consumers with more financial service options and tailored solutions than ever before. Here’s what you need to know.

The data sharing that comes with open banking will help small to mid-size businesses, which are more likely to struggle financially, to quickly assess their financial situation, balance cash flow, organize their taxes, and make faster payments and better financial decisions. Open banking can speed up important processes that increase the flexibility of your business; automated workflows, audit preparation and faster credit applications are some of the ways open banking can create smoother business operations and ease stress for business owners.

Having a clear view of their entire financial landscape can help small and mid-sized businesses be more efficient and profitable, while at the same time giving you better service from your financial institutions. The increased data available to banks will enable them to offer customized products and discounts based on their customers’ habits, and create shared offers with related institutions.

Open banking will also enable financial institutions to better partner with FinTechs, companies that use technology to provide financial services to businesses or consumers. Canada has a thriving FinTech industry and Concentra partners with several FinTechs such as FinanceIt, Savvyy and Borrowell, and we are negotiating new FinTech partnerships on an ongoing basis. With open banking, secure APIs and digital IDs, we’ll be able to integrate some FinTech services with our banking system that commercial and consumer customers can benefit from. FinTechs can also help increase financial inclusion among people who are less able to afford banking costs.

Open banking can help Canada’s small and medium-sized businessesthe backbone of our economyto grow. It’s time to embrace the advent of open banking as a much-needed spark that will open a path to success for Canadians, Canadian businesses and our economy.

As President and Chief Executive Officer Don brings to Concentra a talent for bold and innovative thinking, superior strategic insight and an energetic, engaging leadership style. He possesses a wealth of industry experience from financial institutions in Canada and around the globe. Don is a visionary who enables Concentra to deliver business results and growth by focusing on strategy. A member of the Concentra Bank Board of Directors, Don engages regularly with the Board to continually advance Concentra’s strategic position in the financial services industry. 

For more information, contact:
1.800.788.6311 | CommercialMarkets@concentra.ca

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