Credit union FirstOntario readies for Canada’s open banking push with Flinks and Everlink

1. Partnership Overview:
   • Canadian credit union FirstOntario has partnered with API developer Flinks and paytech Everlink to implement open banking services in preparation for the country’s planned open banking framework rollout in 2025.
2. Enhancing Member Control:
   • The partnership aims to provide FirstOntario’s members with greater control over their financial data, enabling the credit union to offer more personalized financial services.
3. Key Strategic Priority:
   • Lloyd Smith, CEO of FirstOntario, emphasizes that open banking is a key strategic priority for the credit union. Being prepared for the legislative enablement of open banking is crucial to capitalize on the emerging opportunity in the marketplace.
4. Flinks and Everlink Collaboration:
   • Flinks, majority-owned by the National Bank of Canada, and Everlink joined forces in March 2023 to pioneer consumer-driven banking in Canada. They combined Flinks’ open banking infrastructure product, Outbound, with Everlink’s digital solutions.
5. Government Initiative:
   • The partnership aligns with the federal government of Canada’s initiative, announced in November, to introduce an open banking framework. The framework is scheduled to go live nationwide in 2025.
6. Preparation for Open Banking:
   • Financial institutions like FirstOntario are proactively forming partnerships with solution providers like Flinks and Everlink to be prepared for the implementation of open banking services.
7. Consumer-Driven Financial Industry:
   • Yves-Gabriel Leboeuf, CEO of Flinks, notes that there is momentum for a consumer-driven financial industry. The incorporation of open banking functionality within FirstOntario is expected to enhance the banking experience for its members.
8. Replacing Screen-Scraping:
   • Canada aims to replace the current practice of screen-scraping, where confidential banking credentials are shared with service providers. Open banking is seen as a more secure and privacy-conscious alternative.
9. Global Open Banking Trends:
   • The move towards open banking aligns with global trends, with countries like Australia, the European Union, the UK, Japan, and Singapore already implementing or exploring open banking frameworks.

In summary, FirstOntario’s partnership with Flinks and Everlink positions the credit union to offer open banking services in anticipation of the planned national open banking framework in Canada, enhancing member control over financial data and providing a more personalized banking experience.