Open banking

Open banking is poised to radically modernize financial services in Canada, affording consumers greater control over their financial data while fostering innovation, collaboration and competition across the industry. Ottawa has recognized the benefits of a formal open banking framework, having closely monitored the approaches of other G7 countries, and has pledged to have one implemented by 2026.

Canada's foray into this area began in 2018 with the formation of an Advisory Committee on Open Banking. In June 2023, this committee released its Final Report, highlighting key considerations and recommendations toward a formal legislative framework in Canada.

What's next?

The Consumer-Driven Banking Act, part of Bill C-69, received royal assent on June 20, 2024. The Act partially implements Canada’s open banking framework, which was initially introduced with the 2023 Fall Economic Statement and 2024 Federal Budget.

The bill to complete the majority of the framework, which was expected as part of the 2024 Fall Economic Statement, has yet to be released. Instead the Department of Finance issued "Canada’s Complete Framework for Consumer-Driven Banking," the most comprehensive view into Canada’s open banking strategy to date. Building on past announcements, this new overview highlights a vision for open banking governance that would see a:

  • high level of cooperation between federal and provincial regulators;
  • phased prohibition on screen scraping; and
  • heightened focus on national security, among other developments. 

Ottawa aims to launch the consumer-driven banking framework in early 2026. However, with the implementation bill still pending, many details still requiring further consultation, and a likely election looming on the horizon, it remains uncertain if this timeline is achievable.

Get ready

An open banking framework will give fintech companies and other third-party providers a solid platform upon which to develop pioneering financial service solutions and enhanced financial management tools. For banks and credit unions, open banking will open up the competitive playing field in a way they have never experienced, while also laying the foundation for creative partnership and collaboration opportunities.

These forces are shaping a vibrant commercial landscape ahead for creators, purchasers and providers of financial services technology – so long as they can stay one step ahead of the evolving regulatory environment – as well as for the financial institutions responding to these changing market forces. Contact a member of our team to learn how your business can position itself for success in this new age of financial services.

Stay informed

Financial services sector announcements in 2023 Fall Economic Statement
Ottawa is set to unveil its open banking framework in Budget 2024. Here are five things banks and fintechs will be watching closely
Budget 2024 introduces Canada’s Consumer-Driven Banking Framework 

FSxT in the news

'Open banking' is here to stay, but regulatory regime needed to make it safe: Gowling lawyer | Parna Sabet-Stephenson quoted in Canadian Lawyer
4 things on Bay Street's budget radar | Parna Sabet-Stephenson and Alana Scotchmer quoted in the Financial Post
What open banking means for Canada's saturated banking market | Parna Sabet-Stephenson quoted in Reuters