Sources say federal authorities are ready to implement the next phase of the long-delayed financial data sharing law.
Canadian fintech leaders expect the upcoming federal budget to be the next legislative step toward a long-awaited open banking system.
“After many years of discussion and consultation, we need to get this done. That means legislation and a timetable for it to come into effect.”
Andrew Graham
Fintech Canada
Many FinTech leaders BetaKit spoke to on condition of anonymity have been told by government officials and industry associations that lobby them that they expect the next round of open banking legislation in the Nov. 4 federal budget. The second stage of the framework concerns the general rules and accreditation plan for financial service providers.
The sources also indicated that the upcoming budget will likely contain “formulas” around stablecoins, a digital asset that is typically pegged to a currency such as the US dollar.
Treasury spokesman Benoit Sabourin told BetaKit in an emailed statement that “it would be inappropriate” for the agency to “speculate” on what the budget might include.
However, Ryan Turnbull, parliamentary secretary to the Chancellor of the Exchequer, suggested today that post X that the government is committed to opening up banking while preparing the budget.
“At this year’s FinTech Leadership Summit, I reaffirmed our government’s commitment to creating a more innovative, competitive and inclusive financial sector,” Turnbull wrote, using the hashtag #Budget2025.
“From modernizing payment systems to developing consumer-focused banking and digital assets, we are laying the foundation for a stronger, more connected economy.”
FinTech leaders have been calling for a consumer-centric finance system for years. The measure, they say, will improve competition in financial services and lower prices for Canadians. Proponents argue that open banking will provide a secure way for customers to share their financial information with third parties and allow them to more easily switch between banks and other financial service providers. In theory, open banking would also eliminate the need for insecure data sharing practices known asscreen cleaning,”, which requires consumers to provide their online banking username and password to access financial data.
“Like many in the FinTech sector, I am seeking the budget to make significant progress in open banking,” Borrowell CEO and Fintechs Canada Chairman Andrew Graham told BetaKit. “After many years of discussion and consultation, we need to get this done. That means legislation and a timetable for it to come into effect.”
The Long and Winding Road to Opening a Banking Business
Canada's path to open banking began with the 2018 federal budget overhaul. Despite the original bill being passed in 2024, the system never came into force after years of consultations and delays.
The first decision of the federal government open banking review took place in 2019 to evaluate its usefulness to Canadians. The final report recommended moving forward with the development of the framework, and further negotiations discussed issues related to consumer data rights and the decline in data privacy and security.
It then took the Open Banking Advisory Committee two years to publish final report on this issue, “glacial pace” that upset many in the field of FinTech. In 2022, the federal government implemented the recommendations by establishing working groups And appointment Abraham Tachjian as head of open banking, who will develop and implement parts of the system, including the accreditation framework. The advisory committee recommended that the initial phase of open banking come into effect by January 2023.
When did the 2023 federal budget come and go? no updates As part of open banking, a group of Canada's largest fintech companies launched public propaganda campaign to achieve faster file navigation.
A Primer on Open Banking
Canada has been on a long and winding path to open banking since 2018. This collection of stories will tell you about the progress to date:
Eventually the feds introduced Consumer Banking Act in its 2024 budget, which tasked the Financial Consumer Agency of Canada (FCAC) with developing regulations and overseeing the implementation of an open banking system. At the time, the feds said: “second legislative actwill be presented in the fall to flesh out the remaining elements of the structure.
But the 2024 Fall Economic Report (FES) brought more delaysalong with the departure of Finance Minister Chrystia Freeland, which will be closely watched by Prime Minister Justin Trudeau. Despite promises that the system would be implemented in 2025, FES postponed the launch of the system until 2026.
In June, FCAC Commissioner Shereen Benzvi Miller said The agency is working on a consumer awareness strategy, accreditation process and general rules for open banking. Benzvi Miller added that FCAC could “look forward” to the second half of the Treasury Department's open banking program, but did not give a timeline.
After Prime Minister Mark Carney was elected this spring, FinTech leaders expressed cautious optimism about the new leader’s ability to modernize the payment system through open banking and railway in real time (RTR), another repeatedly delayed initiative.
Many FinTech and Cryptocurrency Leaders called Canadian government will develop a framework for using stablecoins as a digital asset popularity is growing. The Bank of Canada also said the government should consider developing stablecoin regulation.
In an article for BetaKit, Coinbase Canada CEO Lucas Matheson called for Canada to develop its own stablecoin infrastructure to avoid dependence on US-made payment systems. “The choice is not just whether we will lead in the future of digital finance, but also whether we will be left behind,” he wrote.
Image courtesy of François-Philippe Champagne via LinkedIn.
