Credit unions face unique challenges with regard to open banking and Real-Time Rail, says Ols
As general counsel, vice president and chief compliance officer at Credit Union Central of Manitoba, Susan Ols navigates complex legal agreements, legal transactions and contracts, intellectual property and privacy matters. She also manages governance matters and advises the corporate secretary on processes and procedures, and she is frequently involved in helping credit unions merge and amalgamate.
CUCM – a trade association and key service provider for Manitoba’s 22 credit unions – is in the process of revising its complex arrangements to manage payments, as well as grappling with the payments modernization process which is now underway in Canada to introduce Real-Time Rail and open banking. Ols is focused on clearing the path for credit union participation as open banking rolls out across Canada.
“With open banking and payments modernization right around the corner, we’re watching this very very carefully, and we want to make sure we have a seat at the table,” says Ols, who is the sole lawyer at CUCM. “We are continually reaching out to the government to make sure that they are thinking about the needs of credit unions as they develop a system for payments or for open banking. They need to take into account that credit unions are subject to provincial regulation.”
Ols works closely with the Canadian Credit Union Association on a number of projects including advocating for credit unions as they seek accreditation for open banking. She also consults with credit unions to give them a voice in the process.
It is important to credit unions to be given the option to participate in open banking by choice, Ols says. While some credit unions are already well equipped to deal with open banking, others are not yet ready.
“The federal government hasn’t really landed on what the legislation is going to look like for open banking,” says Ols. “It will probably be a combination of a number of things like amendments to PIPEDA, changes to the consumer protection framework, and probably legislation as well, so our role is more about advocacy right now, and looking at these legislative developments as they come through.”
Payments modernization and emergency access are systemic, fundamental programs that may have a considerable impact, Ols says, so she is watching them closely. Together with other credit union centrals around the country, CUCM engaged in a regular dialogue with the Bank of Canada about Standing Term Liquidity Facility which was introduced during the pandemic to give financial institutions access to liquidity.
“We are quite excited about the fact that we have negotiated agreements with the Bank of Canada which will facilitate that kind of lending for credit unions,” says Ols, who joined CUCM in 2016 as the organization’s first in-house counsel.
Ols is currently undertaking the challenging task of revising and modernizing CUCM’s bylaws which have not been changed in 30 years. As a new act is coming into force soon to govern Manitoba’s credit unions, ensuring CUCM’s bylaws are up to date and in compliance with the act are key priorities for Ols in 2022. Also top of mind is continuing her consultations with credit unions and aiming to modernize the act in a manner that removes red tape and positions credit unions to adapt their models.
“The act doesn’t really forsee an environment that is virtual, but doing things like establishing quorum is changing," says Ols. "We are looking to get some additional amendments made just so they reflect operational realities.”
