Brokerage Disconnected
Every once in a while on Blossom, the link with your brokerage on Blossom may become disconnected. If this happens, you'll likely receive a red pop-up prompt on the Home tab which looks like this:
Typically, the resolution is simple: click the prompt and re-connect your brokerage.
However, there are some rare instances where this pop-up prompt will keep recurring, and you will need to continue to reconnect your brokerage.
Why does this happen?
Flaky Connections
Unfortunately over the last few years, Canadian open banking connections (what we use to connect your brokerage) have become increasingly unreliable due to a combination of factors:
The rise of cybercrime and frequent hacking incidents across the internet has put banks on high alert, leading them to implement stringent security measures to protect their customers.
The introduction of open banking has shifted the expectations of consumers when it comes to accessing and sharing their banking data. These changes have created significant challenges for data providers like Snaptrade (Blossom's provider), Plaid, Yodlee, etc., as they must contend with more robust security protocols, such as multi-factor authentication systems and bot detection mechanisms, like Google Recaptcha, which hinder their access to online banking.
Canadian banks have been particularly committed to blocking data providers' access, resulting in a decline in the reliability of open banking connections for customers.
PocketSmith, a personal finance software, are facing the same challenges with Canadian open banking. Feel free to read their article outlining the challenges in the Canadian open banking landscape here.
Other Canadians utilizing softwares like Wealthica in Canada have also noticed how these challenges are impacting businesses.
Are Flaky Connections still secure?
In a short answer, yes.
Blossom uses Snaptrade's APIs to provide our users with broker linking options. Security is top of mind for both Blossom and Snaptrade, who uses OAuth connections for Blossom's APIs.
SnapTrade doesn't touch user data without their permission, which is authenticated only when they log in to their brokerage.
SnapTrade only stores credentials when it is essential to the user experience. For bespoke connections, we store and encrypt credentials with AWS KMS. And most important, we never, ever share these credentials.
User data is secured in transit, at rest, and 24/7.
Feel free to read more about SnapTrade's high level security here.
What does this mean for me?
If you notice your brokerage disconnecting frequently, it may mean you have a "flaky connection".
Unfortunately, with the limitations of open banking in Canada at the moment, you will need to continue to re-connect your brokerage when prompted.
At the moment, there is nothing we can do to reduce the number of times your brokerage disconnects.
We understand how incredibly frustrating this is for user experience and truly wish its something we could fix on our end. Until Canadian banks and the Canadian government decide to push innovation in this sector further, our hands are tied.
Future of Canadian Open Banking
In good news, as of November 2023, the Government of Canada has announced its intention to introduce open banking legislation, rebranded as consumer-driven banking, which will regulate third-party access to consumers' financial data. This move comes after the Department of Finance's public consultation on addressing emerging trends in banking access. The government has been contemplating open banking for several years and plans to establish the framework through Budget 2024, aiming for full implementation by 2025, as outlined in the 2023 Fall Economic Statement and Policy Statement on Consumer-Driven Banking.
How can I help?
You can communicate to your government representative the importance of a Consumer Data Right and open banking from the perspective of a concerned Canadian citizen.
History has shown that the banking industry often responds positively to customer demands for services like Blossom when compelled to do so by a government authority with legal jurisdiction over the banks.
If you have any further questions about Flaky Connections, please send us a message through Settings > Get Help, where we will respond within 24-48 hours.
Thank you for your patience and for being a part of the Blossom community 💙