(Image via @RevoluGROUP)
Financial systems across the globe have been forced to embrace open banking - the use of open applications that enable third-party developers to bring financial services to consumers. This has offered greater financial transparency options for account holders ranging from open and private data.
Most of this activity has been seen in Europe and China, but Canada has lagged behind the modern world. Why? Europe
was forced to evolve its banking landscape with the introduction of PSD licensing, while China’s young economy was open to new ideas.
More agile FinTech companies have been quick to “eat the lunch” of established high street banks, though these heavy hitters, the “big six” as they are known, have maintained more than their fair share of the economic pie in Canada. Canada has been under pressure from the European Union and China to embrace open banking and relax its protectionism over the main banking industries. A simple internet search of
“Open banking Canada” brings up a lot of eye-opening information on the subject.
This shift has seen conventional high-street banks close their brick and mortar branches as consumers switch to convenient and cheaper Fintech app-based banking. The Canadian government is not remaining silent on the issue and has been in the news explaining that due to the economic shutdown forced by the COVID-19 coronavirus pandemic, the Open Banking task force has had its work stalled.
This stall comes as a surprise to Steve Marshall, CEO of
RevoluGROUP Canada Inc. (TSX-V: REVO, Forum) and indicates to him that there could be serious pressure on the government to embrace open banking and establish a legal framework to support it.
“They’re telling the citizens of Canada, don’t lose faith, we are on this,” he explained to Stockhouse Editorial in an interview. “Because with the government, if there was no interest in a particular topic, it would just remain silent. If they’re putting out news explaining why they’re not doing something, it’s because they’re getting pressure to do it.”
RevoluGROUP is a distinct FinTech Company not just in Canada, but globally. Its flagship RevoluPAY family of apps, which easily allows you to cover payments from sending and receiving money to family anywhere in the world, paying medical bills, phone or egaming top-ups. In May 2020, REVO was
granted a PSD2 license, which is transformative for its business and essentially allowed it to transition into the banking world. This is the only Canadian business with such a license, a license held by the likes of
Google (NASDAQ: GOOGL) and
Facebook Inc. (NASDAQ: FB).
However, the key caveat here is that this is a Canadian Company where its directors had to temporarily leave Canada in order to be able to do business, because there is still no legal framework in Canada.
Now this Canadian Company that has had to carry out its Open Banking activities outside of Canada wants to bring its technology and proven track record back home:
- Has a venerable system licensed in 27 countries across Europe
- Clearly involved in the open banking sector
- Signed Open Banking agreements for Argentina, Peru, Chile, Ecuador, Costa Rica, El Salvador, Guatemala, Mexico
- On the verge of signing 16 Central/South American and Caribbean countries
- On the verge of signing China and a swathe of Asia
- Only Company to have a license outside of Canada in this hot sector
Once the Canadian government introduces a legal framework, RevoluGROUP wants to be first on the list to solicit these open banking licenses, because it already owns the technology and a license overseas and CEO Marshall believes the Company is high on the list of relevant entities to be a key player in this new sphere that is ready to emerge in Canada.
The advent of open banking is a windfall for consumers, but bad news for banks. The narrative from the federal government on open banking is heated. RevoluGROUP is the lone Canadian business with the experience needed to satisfy what is about to be offered. Economies are waking up from the post-COVID lockdown … the pieces are falling into place and one piece that investors should keep hold of could be stock in RevoluGROUP Canada Inc.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.