Bay of Quinte MP Ryan Williams wants the federal government to honour a promise it made years ago to lower banking fees and mortgages for Canadians struggling to get by.
In the House of Commons Thursday, Williams introduced Bill C-365 “The Consumer-Led Banking Act” which asks the federal government to implement Open Banking.
It’s a policy already adopted in several other countries where bank customers often pay no monthly banking fees, no transactional fees, and no overdraft fees.
Williams says Canadians pay some of the highest banking fees in the world because of a lack of competition but this legislation would force banks to compete for people’s financial business, ultimately saving them money.
” … anything that has to do with banking as whole. And the intent of this is to provide savings back to the family. When this has been implemented in the UK, the average family, per person, is $400 a year. So it’s meant to bring savings home to consumers.”
Mortgage rates in the UK also decreased by one per cent.
Williams says Canada would be one of the last G7 countries to implement such a policy.
In addition to the UK, other countries using an Open Banking system include the U.S., Australia and even Brazil.
Williams notes Canadians currently pay an average of $15 in monthly fees, $1.40 per transactional fees, and $25 for overdraft fees.
“We have a major oligopoly. Canadians pay some of the highest banking fees in the whole world and this legislation would force competition by forcing the bank to share financial data so competitors could get that and “bank” you and therefore with competition, bring better service, bring home savings for Canadians.”
Williams says there is a competition problem in this country where there are few choices for items like banking, internet, cell service, groceries and even beer.
“Canadians pay some of the highest prices in the whole planet simply for the fact that we protect our oligopolies and monopolies. We have big Canadian companies that get bigger and bigger and we’re not looking after the smaller market. Getting competitors into those markets in order to provide better choices for Canadians. It’s all about a freedom of choice.”
Williams says the current Liberal government promised this legislation but has not delivered over the past four years.
Thursday’s legislation would ask the government to present the second report on Open Banking, a report Williams says has been sitting on the Finance Minister’s Desk since May of this year.
Williams says this Bill can get to Parliament within 30 days, and present “Consumer-Led Banking” legislation within six months.
