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Canada's new banking rules, explained – CTV News

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Big changes could be coming to Canada’s banking system, creating new opportunities for Canadians to control and streamline how they manage their money, but also giving rise to new cybersecurity needs.

Here’s a look at what open banking, a set of financial policies adopted abroad and proposed for as soon as next year by the Canadian government, could mean for your pocket book.

What is open banking?

As described in last year’s Fall Economic Statement, open banking allows individuals and organizations to securely transfer their financial data to approved third parties, typically service providers such as financial advice and budgeting applications.

Branded by the federal Liberals as “consumer-driven banking,” the planned system is designed to clear barriers for Canadians to access and use their banking data, while also providing safeguards against financial crime.

How does it work?

Under existing systems, users of some financial services need to share their banking credentials, such as usernames and passwords, with financial technologies companies, sometimes called “screen scraping.”

The federal government describes credential sharing as an “unsecure, unregulated practice” that creates security and privacy risks in the event of a data breach.

An open-banking system would instead allow consumers to consent for their bank to connect with the approved financial service company of their choice and share data without providing them full access to the accounts in question.

In recent years, similar policies have arisen in the United Kingdom, across the European Union and Australia. The Open Bank Project (OBP), an international firm that advises banks and regulators, says that more than 100 countries have introduced the system in some form, or plan to.

“Open banking initiatives are popping up everywhere,” reads a report from Deloitte’s EMEA Center for Regulatory Strategy. “There is little doubt that markets believe that Open Banking, closely followed by a broader cross-industry data sharing ecosystem, are the way forward.”

What can it do?

The government says it hopes to empower Canadians to safely take advantage of more financial technology services, such as applications that help with budgeting, financial advice and aggregators that bring together different bank accounts into a single, streamlined interface.

Another highlighted benefit: allowing consumers to securely share transactional data to build their credit, such as proof-of-payment for major expenses like rent. The government also expects the system to help businesses by reducing administrative workloads and allow for faster processing of loans.

Baked into the proposed system are protections against accessing and sharing fees, part of what the Department of Finance describes as its efforts to ensure that “Canadians can securely and confidently exercise their right to access and use their financial data to improve their financial outcomes.”

A report released earlier this year from North Economics calculated that in 2022, Canadians paid banks billions in what the firm called “excess” fees.

What are the hurdles?

While championed as a driver of consumer protection and competition among banks, open banking isn’t without its risks.

OBP points to data privacy and security as some of the top challenges facing governments, as implementing a new system for sharing financial information also introduces a potential point of attack for cybercriminals, should a data breach impact the system itself.

“Users can be vulnerable to data breaches, cybercrime and fraud when the regulatory framework fails to address and prepare for these issues,” reads an OBP report last updated in November.

Recent months have seen numerous cybersecurity incidents affecting major public entities including hospitals, municipal governments and even the RCMP itself.

“2023 is, by far, much worse than any other year,” University of Guelph cybersecurity expert Ali Dehghantanha said in an interview with CTV News in December.

Consumer education is another key hurdle, OBP says, as prior introductions of open-banking frameworks have seen disapproval and distrust with the concept.

A June report from the Financial Consumer Agency of Canada, cited by OBP, found that fewer than one in 10 surveyed Canadians had heard of open banking, and once it had been explained to them, a majority said they would not participate.

“Any new technology or process usually meets doubts and fears,” the OBP report reads. “The only solution, aside from implementing secure measures, is to educate the public.”

When could it launch?

The government says framework legislation for an open-banking system is expected in Budget 2024, which itself is set to be released on April 16. The Department of Finance in a policy statement last year wrote that legislation could be adopted, with the “necessary government framework,” by 2025.

In an article reacting to the Fall Economic Statement in November, experts from business law firm McMillan LLP warned that those interested in open banking could have longer still to wait.

“Although the federal government’s intention to introduce legislation to implement the Proposed Framework is a significant step, the news should be met with a healthy dose of skepticism given the history of long delays when it comes to open banking in Canada,” it reads. 

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Bologna prepares for Champions League debut with draw at Como while Juventus held

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MILAN (AP) — Bologna’s preparations for its Champions League debut are not going well though it managed to spoil Como’s first Serie A home match in 21 years on Saturday.

Bologna came from two goals down to salvage a 2-2 draw to gather three points from its opening four matches.

Bologna hosts Shakhtar Donetsk on Wednesday. Its only other appearance in Europe’s top competition was in 1964 in the preliminary round of the old European Cup.

AC Milan is also winless as it prepares for a Tuesday Champions League match against Liverpool. The Rossoneri hosted promoted Venezia later. Juventus drew at Empoli 0-0.

Como made a great start in the fifth minute when Patrick Cutrone attempted to roll the ball across the six-yard box but it took a huge deflection off Bologna defender Nicolò Casale for an own goal.

Bologna thought it was gifted a way back into the match on the stroke of halftime when referee Marco Piccinini signalled for a penalty following an Alberto Moreno handball, but he revoked his decision and instead gave a free kick because the handball was just outside the area.

Bologna improved after the break but found itself further behind when Cutrone raced onto a through ball and cut inside past a defender and fired into the far bottom corner.

Tommaso Pobega hit the post for Bologna, which finally pulled one back in the 76th through substitute Santiago Castro.

Another substitute helped the visitors snatch a point when Samuel Iling-Junior curled a fine strike into the top left corner in stoppage time.

Unbeaten sides

Juventus, and more surprisingly Empoli, are among six unbeaten sides.

Empoli held Monza and Bologna to draws either side of a shock 2-1 win at Roma. Juventus’ perfect start to the season was ruined by Roma in a goalless draw before the international break.

On Saturday, there were few clearcut chances in Empoli although home goalkeeper Devis Vásquez made spectacular saves to fingertip out a Federico Gatti header and deny Dusan Vlahovic in a one on one with the Juventus forward.

Empoli had a good opportunity in the 73rd minute following an Alberto Grassi one-two with Pietro Pellegri but the finish was straight at Mattia Perin.

The host could have won it right at the death but Gatti flew in with a great sliding block to keep out Emanuel Gyasi’s close-range effort.

Juventus hosts PSV Eindhoven in the Champions League on Tuesday.

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AP soccer:

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Liverpool ‘not good enough’ says Arne Slot after shock loss against Nottingham Forest

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MANCHESTER, England (AP) — Not good enough. That was Arne Slot’s verdict after his first defeat as Liverpool manager on Saturday.

A shock 1-0 loss at home to Nottingham Forest in the English Premier League ended Slot’s perfect record since succeeding Jurgen Klopp at Anfield at the end of last season.

“We had a lot of ball possession but only managed to create three (or) four quite good chances, so that is by far not enough if you have so much ball possession,” said the Dutchman, who suggested his team should not be losing to the likes of Forest.

“If you lose a home game it’s always a setback, especially if you face a team … we never know, maybe they will go all the way to fight for Champions League tickets, but normally this team is not ending up in the top 10, so if you lose a game against them that’s a big disappointment.”

Slot won his first three games in charge, including a memorable 3-0 victory against Manchester United before the international break.

But that run came to an end after Callum Hudson-Odoi struck in the 72nd with a curling effort from the edge of the box and beyond goalkeeper Alisson.

Liverpool’s defeat leaves Manchester City as the only team with a 100% record in the league after a 2-1 win against Brentford kept the defending champion at the top of the table.

United won at Southampton 3-0 to end its two-game losing streak.

Unstoppable Haaland

Erling Haaland moved to 99 goals for City after scoring twice against Brentford.

The Norwegian’s double came after Yoane Wissa fired Brentford ahead with just 22 seconds on the clock.

Haaland scored his 98th and 99th goals in his 103rd City appearance in all competitions. And he was the width of the post away from his third consecutive hat trick after trebles against Ipswich and West Ham.

“He’s been really, really good. Yeah, I would say he’s the best (he’s been), but it’s only four fixtures (this season),” City manager Pep Guardiola said.

Haaland, who has been nominated for the Ballon d’Or, has nine goals in four league games. He has topped the league scoring charts in each of his two seasons at City since joining from Borussia Dortmund in 2022 for $63 million.

Haaland’s first goal after 19 minutes evened the game following Wissa’s opener, which stunned the Etihad Stadium crowd. Haaland turned and swept a shot past goalkeeper Mark Flekken after a slight deflection off Ethan Pinnock.

He was then too strong for Pinnock when shaking off the defender and running through for his second in the 32nd.

He was inches away in the 81st; the shot came back off the post after beating the keeper.

Rashford snaps run

Marcus Rashford snapped a 12-game barren run in front of goal as United beat Southampton.

Rashford doubled United’s lead at Saint Mary’s after Matthijs de Ligt’s scored his first for the club. Substitute Alejandro Garnacho scored a third in the sixth minute of stoppage time.

The win came after back-to-back defeats for United.

Rashford hadn’t scored since March in United’s win over Liverpool in the FA Cup quarterfinals. He curled in a shot from the edge of the area to put Erik ten Hag’s team 2-0 up at Southampton in the 41st minute.

Ten Hag said it could be a turning point for the forward.

“For every striker, they want to be on the scoring list. Once the first is in, more is coming. Like a ketchup bottle, once it’s going, it’s coming more,” he said.

De Ligt, who joined United from Bayern Munich in the offseason, headed in from Bruno Fernandes’ cross in the 35th.

It could have been a different story if Cameron Archer converted a penalty for Southampton in the 33rd. Instead, his effort was saved by goalkeeper Andre Onana.

Newly promoted Southampton was reduced to 10 men when Jack Stephens was sent off in the 79th for a high challenge on Garnacho.

Villa comeback

After three straight defeats to start the league, Everton looked set for its first win when leading Aston Villa 2-0.

Goals from Dwight McNeil and Dominic Calvert-Lewin put Sean Dyche’s team in control until Ollie Watkins struck twice to even the game.

Jhon Duran completed Villa’s comeback and sealed a 3-2 win in the 76th to leave Everton rooted to the bottom of the table and the only top flight team without a point.

Late drama

Jean-Philippe Mateta converted a stoppage time penalty to salvage a 2-2 draw for Crystal Palace against Leicester.

Leicester led 2-0 at Selhurst Park after goals from Jamie Vardy and Stephy Mavididi.

But Mateta sparked Palace’s response with a goal in the 47th, a minute after Mavididi doubled Leicester’s advantage.

Conor Coady fouled Ismaili Sarr in the box right near fulltime and Mateta was cool enough to convert.

West Ham left it even later to salvage a point in a 1-1 draw at Fulham.

Danny Ings struck in the fifth minute of added time after Raul Jimenez’s goal looked like earning Fulham the win.

Brighton boss Fabian Hurzeler, the manager of the month for August, was frustrated as his team was held to 0-0 at home by Ipswich.

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James Robson is at https://twitter.com/jamesalanrobson

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Cavaliers and free agent forward Isaac Okoro agree to 3-year, $38 million deal, AP source says

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CLEVELAND (AP) — Restricted free agent forward Isaac Okoro has agreed to re-sign with the Cleveland Cavaliers on a three-year contract, a person familiar with the negotiations told The Associated Press on Saturday.

Okoro’s new deal is worth $38 million, according to the person who spoke to the AP on condition of anonymity because the contract has not been signed or announced by the team.

ESPN.com first reported the agreement, citing Okoro’s representation.

The fifth overall pick in the 2020 NBA draft, Okoro is Cleveland’s best perimeter defender, often drawing the assignment of guarding the opponent’s top scorer. Okoro also has worked to improve his offensive game.

The 23-year-old averaged 9.4 points and 3.0 rebounds in 69 games — 42 starts — last season for the Cavs, who beat Orlando in the opening round of the playoffs before losing to eventual champion Boston.

Okoro shot a career-best 39% on 3-pointers, forcing teams to come out and guard him.

His agreement caps an extraordinarily busy summer for the Cavs that began with coach J.B. Bickerstaff being fired and replaced by Kenny Atkinson. All-Star guard Donovan Mitchell signed a three-year, $150 million extension in July, ending months of speculation that he wanted out of Cleveland.

Also, power forward Evan Mobley signed a five-year, $224 deal and center Jarrett Allen signed a three-year, $91 million extension.

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AP NBA:

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