To prepare for the move to open banking and open finance, National Bank of Canada, one of Canada’s six systemically important banks, selected CGI, a trusted 20+ year partner, to help position the Bank as a market leader when new banking legislation comes into effect.
A seismic shift for Canadian banks
National Bank is looking to establish a foothold in the open banking world; as such, the transition to this new approach is an opportunity to improve the Bank’s position in a changing financial services landscape.
National Bank of Canada’s Open Banking Centre of Expertise approached CGI for support in developing a path for future growth in the new open finance ecosystem. The organization is poised to be one of the first Canadian banks out of the gate when new banking legislation takes effect in 2023.
The shift to open finance and open banking is notable because it returns ownership of personal banking and financial data to the consumer. The implications for banks and consumers are significant. These changes will upend the banks’ proprietary hold on personal and banking information and allow consumers to make their data “portable”—effectively enabling them to move personal data and financial information to any number of new and existing banks or third-party providers.
The changes are not only technological but also structural: CGI provided valuable input into National Bank’s strategy and vision, with the ambition of ensuring a strong presence in Canada’s competitive and “disrupted” financial services market in the years to come.
A unique collaboration
We jointly worked through key questions, including what kinds of products should be introduced and why. We focused on business objectives and used our global network to provide National Bank with insights into how these changes have played out in other jurisdictions.
This unique collaboration with National Bank’s Centre of Expertise also delved into identifying which use cases would be most suitable.
This prioritization framework relied on factors supported by various variables and was used to select use cases that could be implemented.
Positive impacts
With our help, National Bank’s Centre of Expertise has built a foundation for future developments in the Canadian open banking and open finance ecosystem. They have now developed tools that can be reused to advance their team and bring the right products and services to market.
The team has solidified its position, leveraged its knowledge, and grown from a small group of experts into a full-fledged unit within the Bank.
With the advent of open finance and open banking in Canada, the business model and value chain for banks will change in a significant way. “Our collaboration with CGI and its outcome are essential to the future of our business. We are pleased to be able to count on CGI's support and expertise for this major project,” said Stéphane Bousquet, Leader of National Bank of Canada’s Open Banking Centre of Expertise.
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It’s not often that a major disruption and significant trends force a whole industry to change its approach. This is a major play for National Bank, and we’re very proud of the work we have accomplished.