What open banking is
Open banking—often discussed in Canada as consumer-driven banking—is a framework for sharing financial data through authorized, secure connections rather than handing over login credentials manually.
Consent should be specific
A good consent flow explains what data is requested, why it is needed, which organization receives it and how long access lasts. Avoid approving access you do not understand.
Safer than screen scraping is the goal
Modern API-based data sharing is intended to reduce the need to share usernames and passwords with third parties. The exact method depends on the service and Canadian implementation.
Questions to ask
Before connecting an account, ask who the data provider is, what data is accessed, whether access is read-only, how to revoke consent and what happens to previously collected data.
General information only. This article is educational and does not replace legal, credit or financial advice. Rules and product terms can change.