Digital Governance Standards Institute publishes a workshop agreement for Canadian fintech innovators

Financial institutions (FIs) are increasingly relying on artificial intelligence / machine learning (AI/ML) solutions to streamline operations, processes, and business services provided by Canadian fintech innovators. At the same time, when adopting these innovative solutions, FI’s must consider a myriad of additional compliance obligations e.g., privacy, security, while also managing expanded third-party risk factors and expanded reputational risks.

The Digital Governance Council (DGC) has released a workshop agreement (DGSI/WA 126:2023) for Canadian fintech innovators to address risks associated with third-party AI/ML solutions being utilized by FIs. While FIs are increasingly adopting AI/ML provided by fintech vendors to streamline their operations and business services, these solutions can pose compliance, reputational, operational and financial risks. To build trust between FIs and fintech vendors, the DGC’s Digital Governance Standards Institute (DGSI) developed the workshop agreement in partnership with the Canadian RegTech Association (CRTA), who received funding through the Standards Council of Canada (SCC) Intellectual Property Program.

“Third-party relationships have been a mainstay in financial services driving innovation and enabling faster speed to market. FI’s have always had to weigh risk vs. reward but with the introduction of AI/ML and more specifically Generative (AI), the potential organizational impact of its use is amplified.  This workshop agreement promotes transparency and a shared understanding of best practices which serves to reduce common challenges so that model risk validations teams can focus efforts on risk assessment.  We look forward to continued discussions with the industry to ensure the proper safeguards and disclosure is in place.”

– Donna Bales, Founder, Canadian Regulatory Technology Association

Today, DGC and CRTA announce the publication of DGSI/WA 126: 2023 Baseline Requirements for Vendors Offering AI/ML Lifecycle Solutions to Financial Institutions. The workshop agreement covers steps such as establishing a model governance framework, managing risks upfront, and documenting end-to-end data collection and processing. The publication builds on the extensive in-depth insights and experiences shared in January 2023 by over 75 AI/ML expert stakeholders representing financial institutions, fintech vendors, regulators, academics, consultants, and thinktanks.

This publication is timely, as it reflects the DGC’s and CRTA’s ideas to build on the Office of the Superintendent of Financial Institutions (OSFI)’s recent update to Guideline B-10: Third-Party Risk Management and may also compliment OSFI’s upcoming consultation on Guideline E-23: Enterprise-Wide Model Risk Management for Deposit-Taking Institutions.

 “Standardization deliverables, whether workshop agreements, National Standards of Canada, technical specifications, or other documents, all play a key role in determining how we structure, secure, and govern data. SCC supports innovators from all kinds of industries and sectors to have an opportunity to participate in standardization work. We are proud to act as an impartial advisor to help foster the right conditions for Canadian innovators like the Canadian RegTech Association to advance their ideas. We are encouraged to see solutions that support and build on Canada’s commitment to innovation in the digital space for a stronger and more competitive Canada.”

– Chantal Guay, CEO of the Standards Council of Canada.

By consolidating diverse organizational perspectives and approaches to managing third-party risks, this publication brings together best practices and agreed-upon processes to establish a consistent approach to common challenges FIs face when outsourcing AI lifecycle processes. The workshop agreement provides foundational support to fintech vendors to increase innovation opportunities while building confidence in the Canadian marketplace.

“We are happy to have partnered with Canadian RegTech Association and the Standards Council of Canada on the development of a Workshop Agreement that provides baseline requirements for vendors who offer AI/ML Solutions to financial institutions. The workshop was an opportunity to come to a shared upon agreement of best practices that cover steps such as establishing a model governance framework, managing risks, and documenting end-to-end data collection and processing. Through implementation the Workshop Agreement will serve to reduce common challenges.”

– Darryl Kingston, Executive Director, Digital Governance Standards Institute

You can read more about this workshop agreement.


Media contacts

Digital Governance Standards Institute (DGSI)
Darryl Kingston
+1 613 627-2466

Canadian RegTech Association (CRTA)
Donna Bales
+1 647 530-8380

Standards Council of Canada (SCC)
Annie Roy
+1 613-238-3222



Digital Governance Council (DGC)

The Digital Governance Council is a member-driven organization that acts as a cross-sector neutral convener for Canada’s executive leaders to identify, prioritize and act on digital governance opportunities and challenges. The Council leads an Executive Forum for council members, sets technology governance standards through the Digital Governance Standards Institute and certifies the compliance of Canadian organizations in the management of the effective and efficient use of digital technologies. Learn more at


Digital Governance Standards Institute (DGSI)

The Digital Governance Standards Institute develops digital technology governance standards fit for global use. The Institute works with experts, as well as national and global partners and the public to develop national standards that reduce risk to Canadians and Canadian organizations adopting and using innovative digital technologies in today’s digital economy. The Institute is an independent division of the Digital Governance Council. Learn more at


Canadian RegTech Association (CRTA)

The Canadian RegTech Association is a non-profit organization focused on solving regulatory challenges through collaborative efforts between key RegTech stakeholders: regulated entities, technology vendors, regulatory bodies, government and professional service providers.

Learn more at  


Standards Council of Canada (SCC)

SCC is a Crown corporation within the portfolio of Innovation, Science and Economic Development (ISED) Canada. With the goal of enhancing Canada’s economic competitiveness and social well-being, SCC leads and facilitates the development and use of national and international standards. SCC also coordinates Canadian participation in standards development and identifies strategies to advance Canadian standardization efforts, while reducing barriers to engagement.

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