How Canada’s Open Banking Rules Will Empower Fintech and Consumers

1. How Canada’s Open Banking Rules Will Empower Fintech and Consumers The Canadian financial ecosystem is utilizing Open Banking Canada as an available means of change. Open Banking Canada is designed to give consumers control of their financial data and afford FinTechs the opportunity to innovate their own financial products. In conjunction with the launch of Real-Time Rail Canada (the country's up-and-coming instant payment rail), open banking is intended to allow consumers and businesses access to faster, safer, and more efficient financial services. What is Open Banking Canada?

2. Open Banking Canada describes a safe system that leverages regulated and standardized systems to allow users to share their financial data with third-party providers. Users will be able to avoid conventional banks and develop partnerships with fintechs, adding progressive services like budgeting tools, lending systems, and more sophisticated payment services, to name few. Compared to the manual, risky, and often unpredictable way of sharing data practices today, open banking enables users to exercise complete control over who sees their financial data and why, thereby enhancing overall transparency, security, and innovation across the financial sector. How Open Banking Canada Benefits Consumers The new framework provides everyday users many benefits, including: 1. More Control Over the Financial System Consumers will be the ones to choose which apps and providers can access their information, meaning they can shop for better mortgage rates, investment options, or savings accounts without being tied to the limits of one bank. 2. Tailored Financial Services Thanks to Open Banking Canada, fintechs can use consumer data to build custom services. Whether improved investment advice or an AI-driven savings goal tool, consumers will receive services that fit within their lifestyle. 3. Smooth Transactions When bundled with Real-Time Rail Canada, consumers will enjoy instantaneous transfers between their different accounts and across institutions. Paying bills, splitting expenses, or sending money will not take hours—or days. Real-Time Rail Canada: A Game Changer Real-Time Rail Canada is a payment system that provides real-time, secure transactions 24/7. Unlike other payment options that can take time to process, payments in the RTR framework happen within seconds. Why it Matters ● ● Instant Settlement: Businesses and consumers will no longer wait for funds to settle Improved Security: Real-time rail Canada transactions greatly minimize the chance of fraud or

3. ● ● delays in payments Fostering innovation: Fintech companies can build, improved and fast-track applications and services using this new infrastructure and provide a better user experience. Escrow Payment Automation: Building Trust The future of Open Banking Canada is also driven by escrow payment automation. Escrows typically involve a lengthy and costly process, and involve third-party intermediaries to allocate and monitor funds between buyers and sellers. ● With the help of escrow payment automation, fintech platforms dramatically change this process. For example: ● Instant Payment Release: Once contract terms have been met by both parties, payment is automatically released. ● Cost Reduction: Costly third-party intermediaries are removed with automation. Sturdy Agreements: Buyers and sellers can rest assured that the transaction is secure and payments are made transparently. Automated escrows incorporated with Real-Time Rail Canada guarantee secure and instantaneous payments in tight deadlines for large scale transactions (i.e., real estate transactions, business deals, etc.) Impact on the Fintech Sector Fintechs are positioned to thrive under the new system. 1. Expanded Market Opportunities With consumer consent, fintechs can directly access data from major banks. This enables them to compete fairly and create niche products that address specific financial needs. 2. Faster Product Development By leveraging Real-Time Rail Canada, fintechs can design applications that offer instant money transfers, automated loan disbursements, and escrow payment automation services without delays. 3. Building Consumer Trust Consumers are more likely to adopt fintech services when they know their data is protected by a regulated Open Banking Canada framework.

4. How Consumers Will Benefit from Escrow Payment Automation Imagine buying a house, car, or even expensive digital services. Instead of waiting days for banks and lawyers to clear payments, escrow payment automation ensures money is held securely and released instantly once terms are met. For consumers, this means: ● Faster transactions with fewer delays. ● Lower transaction costs compared to manual escrow services. ● Peace of mind knowing that funds are protected by both Open Banking Canada regulations and Real-Time Rail Canada infrastructure. Challenges Ahead While the opportunities are exciting, several challenges must be addressed: ● Consumer Education: People need to understand how Open Banking Canada works and how to safely manage their data. ● Security Standards: Strong cybersecurity measures are required to prevent breaches. ● Industry Collaboration: Banks, fintechs, and regulators must work together to ensure seamless adoption. The Future of Finance in Canada As Open Banking Canada and Real-Time Rail Canada are being rolled out, Canada is ushering in a new financial era. Consumers will benefit from faster, safer, and more customized financial services while fintech companies have the technology to create more innovative and fairly competitive products. As escrow payment automation continues to integrate into the payment ecosystem, it further builds trust when conducting large transactions—and in turn is making digital finance more accessible and trustworthy. Conclusion:

5. The combination of Open Banking Canada, Real-Time Rails Canada and escrow payments automation is going to change the financial sector. Consumers will have more control, instant payments and safe transactions, and fintechs will thrive in a more competitive and open marketplace. At Safe Deposit, we believe these advancements will open new pathways for individuals and businesses. With open banking and automation, Canada is building a financial system designed to be secure, efficient and consumer centric; defining the future of digital finance.