Small Business Positive About Open Banking

Small businesses want the upcoming open banking framework to reflect their needs, says research from Mastercard. Businesses want better access to digital tools and technology that are easy to use, are time-savers, and are secure and trustworthy. In March 2022, the government of Canada announced the open banking framework as a consumer-directed finance system that will enable consumers to transfer their financial data between financial institutions and accredited third parties in a secure way. It is designed to benefit small businesses by helping to streamline operations and providing faster access to credit. The research says 65 per cent of small business owners feel positive about the concept, indicating they're ready to seize the opportunity for growth and streamlining offered by open banking. As major users of digital financial tools and technology, 80 per cent of small business owners say Canada's open banking framework should take their unique needs into account. A further 70 per cent say they're more inclined to use government-regulated tools/technologies in a hybrid open banking system, as opposed to unregulated platforms, signalling the importance of trust and transparency in the sector. Small business owners rank fraud prevention (37 per cent) and payment verification (37 per cent) as the most appealing benefits of digital financial tools and technology.