Personal Finance Canada

Good article, bad clickbaity headline. For anyone else wondering what it is but not wanting to click, here it is!

Open banking works by giving consumers the option to share their banking data with other firms. The most common use is granting access to budgeting or money management apps and companies, so that a customer can pool different bank accounts and credit cards into one place.

Other emerging uses include simpler payments, automated accounting, and business finance management.

One of the biggest areas of growth is in credit assessments. Under open banking, lenders could directly access an individual’s banking data, so they can look beyond credit scores. Consumers can also use it to build their credit scores, for example by proving reliable rent payments.