Canadians could see changes in banking next year. What to expect

The federal government approved RBC's $13.5-billion takeover of HSBC Canada this month. Here's a look at some of the other changes expected in Canadian banking in 2024

The federal government approved RBC’s $13.5-billion takeover of HSBC Canada in the waning days of 2023, despite concerns from critics that it will stifle competition. Banking customers will start to see next year how the acquisition, expected to close in the first quarter, shakes out.

Here’s a look at some of the other changes expected in Canadian banking in 2024:

The federal government said in its fall economic statement that it would introduce legislation in its 2024 budget to establish an open banking framework.

Open banking, or what the government calls ‘consumer-driven banking’, would make it easier for Canadians and small businesses to safely share their financial data between services, including options like budgeting apps. For example, a customer could pool all of their various bank accounts into a single interface, making it easier to add and manage no-cost accounts or other products.

Many in the financial tech community have been pushing for the adoption of open banking to make it easier for consumers to switch bank accounts and try new services. British consumers, for instance, can tell their bank to switch their account over to a competitor, and all incoming and outgoing payment information like automatic bill payment is transferred as well.

The federal Liberals had promised in its 2021 election campaign to have open banking in place no later than early 2023.

Consumer advocates have been pushing for years to bring back a single banking ombudsperson to resolve complaints since the current two options allows banks to choose which service they prefer, rather than what’s necessarily best for clients.

The federal government said in its 2022 budget that it would bring in legislation to bring in a single complaints body. In October of this year, the government announced that the Ombudsman for Banking Services and Investments, one of the two existing organizations, would have jurisdiction over all banking complaints as of Nov. 1, 2024. The other, ADR Chambers, will continue operating its other conflict resolution services.