National Bank is leading the charge in data sharing within the banking industry. Unlike other Canadian banks, National Bank provides its customers with a unique data-sharing experience when linking their accounts to approved fintech apps. While most banks direct customers to external data-collecting firms that require online banking passwords, National Bank redirects customers to its own website, where their identity is verified before securely sharing the data through a dedicated feed.
Although National Bank doesn’t heavily market this feature, it stands out as the sole major Canadian bank offering a secure data feed, known as an application programming interface (API), for retail customers interested in using fintech apps. With the impending rollout of open banking regulations by the federal government, National Bank’s proactive approach positions it ahead of its competitors.
Natacha Boudrias, the head of open banking at National Bank, emphasized the bank’s foresight in recognizing the evolving landscape of data sharing in the financial sector. While open banking is set to launch in 2026, many Canadians have already embraced screen scraping, a practice that involves sharing banking passwords with fintech apps. However, National Bank’s strategic investment in APIs has significantly reduced screen scraping among its customers.
In 2021, National Bank made a significant move by increasing its stake in Flinks, a Montreal-based financial data aggregator, which played a crucial role in accrediting fintechs to access the bank’s data securely. This proactive step not only enhanced customer experience but also paved the way for innovation and potential product development based on the insights gained from data sharing.
While National Bank’s initiative has delivered tangible benefits, challenges persist. Convincing fintechs to invest resources in accreditation for accessing the bank’s API proved to be a slow process. Additionally, maintaining and improving APIs requires ongoing dedication and technological updates to align with evolving customer needs.
Experts in the industry suggest that a market-driven approach, as demonstrated by National Bank, could be more effective than mandating open banking regulations. However, the scalability of such an approach remains a concern, as individual relationships between banks and fintechs may not foster a robust ecosystem.
As the government gears up to implement open banking regulations, National Bank’s proactive stance serves as a model for the industry. Boudrias hopes that policymakers will expedite the process to capitalize on the generational opportunity that open banking presents, emphasizing the importance of incremental growth and adaptation in the evolving financial landscape.
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