Jason talks to Brigit Carroll, the policy lead for the Americas at Wise. Wise is a company that has previously appeared on the show. Jason has invited Bridget to discuss the progress or lack thereof regarding open banking in North America. They discuss various topics related to cross-border payments, banking apps, and the challenges faced by the industry. Bridget emphasizes the need for transparency in pricing and reducing the cost of remittances. They also talk about the evolving narrative of fintech disruptors and the importance of collaboration within the payment ecosystem.
Episode Highlights
- 00:42: Bridget provides a recap of what Wise (formerly known as TransferWise) is all about.
- 01:18: Wise is a global payments company that focuses on providing the best solution for moving money across borders.
- 02:22: Open banking is seen as a crucial component of the overall modernization of the payment ecosystem in Canada.
- 08:33: Bridget emphasizes the importance of faster payments, stating that Canadians deserve it and it's not just a luxury. Failure to deliver on this promise would be detrimental to consumers and businesses during the cost-of-living crisis.
- 11:26: Bridget emphasizes the importance of bringing Canada up to speed with the rest of the world.
- 16:22: Canadian banks are not competitive and are expensive compared to other financial institutions globally.
- 18:06: There are long lead times for various initiatives, such as the retail Payments Activities Act, which is currently undergoing consultations.
- 27:10: Knowing that we are making a positive difference in the lives of millions of people around the world is incredibly rewarding. It's why we do what we do, and it's what keeps us motivated to continue pushing for better solutions and a more inclusive financial system, says Bridget.
3 Key Points
- Bridget explains that payments modernization in Canada includes various aspects such as real-time payments, modern payment licensing through systems like RPAs (Request-to-Pay Agreements), open banking, and enabling fintech companies to access the payment system through amendments to the Canadian Payments Act.
- Jason highlights the frustration of waiting several days for a payment to clear and emphasizes that instant payments are crucial for individuals who cannot afford to wait for their paychecks or for small businesses seeking instant liquidity.
- Jason criticizes banks for their generic marketing approaches that fail to address individual needs.
Tweetable Quotes
- "Canadian banks may strongly resist open banking, while noting that Europe has taken a legislative approach, and the United States has embraced free market capitalism." – Jason
- "Wise was the first non-bank to access the Bank of England's faster payment system, resulting in cost reductions for customers and significantly faster payment processing." - Bridget
- "Change needs to happen in collaboration with regulators and incumbents as well. It's not about disrupting for the sake of disruption, but it's about working together to create a better system." – Bridget
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