Speaking at the Open Banking Expo Canada conference, the former finance minister advocated for a largely market-driven approach to open banking and cautioned that infighting among stakeholders would only lead to delays in the system’s implementation. (The Logic)

Talking point: Morneau echoed arguments by large financial institutions that an industry-led approach to open banking is better than mandating participation in the system through regulation. “Forcing regulators to determine a top-down regime will run into implementation and execution risks, which will leave an imperfect regulatory regime,” he said. “Involuntary systems are inefficient, drawn-out, rife with jurisdictional sensitivities and burdensome for participants.” The federal government’s advisory committee on open banking had recommended a hybrid approach that nonetheless involved significant government involvement with the system, including the potential for new laws to ensure the system is rolled out. However, the Trudeau government hasn’t yet signalled what type of approach it intends to take, prompting outcry from fintechs.