Canada’s Open Banking Legislation: A Potential Lifeline for Women Facing Economic Abuse

Canada's Bill C-15, currently under consideration in Parliament, aims to implement a new open banking framework by 2026. This legislation is designed to modernize the Consumer-Driven Banking Act, granting the Bank of Canada oversight and allowing consumers and small businesses to securely share their financial data with chosen third parties. While discussions have primarily focused on enhancing competition and technological innovation, the bill also holds significant implications for addressing economic abuse, particularly against women.

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Economic abuse is a pervasive form of gender-based violence where financial control is used to exploit or harm individuals. Statistics Canada indicates that this form of abuse disproportionately affects women, with the Canadian Centre for Women’s Empowerment estimating that one in three women experiencing intimate partner violence also faces economic abuse. A study in Ottawa revealed that 93% of respondents lacked access to their own finances, and 86% reported being ordered to quit their jobs by an abusive partner, leading to increased isolation and financial dependence.

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Under the proposed open banking framework, banks would no longer act as the sole gatekeepers of financial information. Individuals could authorize regulated third parties, such as accredited apps or legal professionals, to access their financial data securely. For instance, a woman co-owning a café could independently verify her business's financial transactions without needing her partner's consent, thereby gaining insight into potential financial misconduct.

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The effectiveness of the open banking framework in combating economic abuse hinges on its design, particularly regarding survivor safety and joint account management. Learning from international examples, such as the United Kingdom and Australia, Canada could implement protocols that prioritize the safety of survivors. These may include silent authentication processes, independent verification for each account holder, and safeguards against automatic notifications that could escalate risks for victims.

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To maximize the benefits of open banking for survivors of economic abuse, community organizations, shelters, and legal clinics must be equipped as trusted intermediaries. These entities can assist clients in navigating open banking tools while minimizing exposure to potential digital surveillance or retaliation from abusers. In the U.K., for example, community legal clinics have successfully acted as intermediaries, providing essential support for victims.

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Policymakers are urged to recognize open banking as a critical component of Canada's strategy to address economic abuse and bolster small business resilience. By prioritizing survivor safety in the design of the framework, data mobility can empower victims to document abuse, regain financial autonomy, and sustain their businesses.

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• “If designed with safety in mind, data mobility can help survivors document abuse, regain financial autonomy and keep businesses alive.” — Eric Saumure, CPA, CA, Principal at Zenbooks and Founder of OpenSME.

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In conclusion, as Canada moves towards implementing open banking, the potential to address economic abuse presents a significant opportunity to empower women and enhance their financial independence.

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