What lies ahead on Canada’s path to open banking?
Canada is making strides in its adaptation to open banking, but there is still a long way to go.
The business and payments sector is desperate for modernisation that will enable open banking payment methods and digital payment rails for the benefit of both the private sector and consumers.
In this video, Paylume’s Andrew Gomez explains to a fully packed room at the Payments Canada summit just how open banking can be a source of revenue for payment service providers, while using examples from his personal life.
Where is Canada Now?
Canada has laid the groundwork for open banking with the passage of the Consumer-Driven Banking Act as part of Bill C-69.
Granted Royal assent in June 2024, the Act mandates read-only data sharing via standardised APIs, requires annual consent renewal, and designates the Financial Consumer Agency of Canada (FCAC) as the regulator charged with oversight.
However, while this legislation is a significant first step, crucial components for open banking, such as the accreditation criteria for fintechs, liability frameworks, and a set of finalised technical standards, remain under development.
The expectation is that these will be completed by 2025, with an early 2026 launch being tipped.
Canada’s 2024 Budget and Fall Economic Statement reinforced this framework, confirming FCAC’s expanded mandate and the creation of a Senior Deputy Commissioner role to oversee implementation.
What could be the most vital enabler for open banking in Canada is the Real-Time Rail (RTR), Canada’s new instant payment system.
As of early 2025, RTR is more than halfway through its technical build and is on track for completion this year, with testing and a full roll-out due in 2026.
If Canada can keep to its roadmap for RTR and agree on standards for open banking, then a framework could be operational within as little as 18 months.
There is fervent industry support for open banking. A KPMG Canada survey in July 2025 found that some 65% of business leaders believe Canada’s digital payments and open banking infrastructure is in desperate need of modernisation to remain competitive.
The trade association Fintechs Canada has also been a strong advocate for expanded coverage, calling for the inclusion of both registered and non-registered investment accounts to ensure that full consumer benefit.
The Road Ahead for Open Banking
When analyzing insider transactions, investors typicallyUnlike its counterparts in the UK and EU, regulated open banking is not yet readily available to Canadian consumers, who still rely on methods like screen scraping.
However, it is firmly on the path to completion and within the coming years, open banking in Canada stands ready to revolutionise payments and revenue streams for banks and payment companies.
