Canadian FinTech leaders told to finally expect open banking progress in fall budget

Canadian FinTech leaders expect the upcoming federal budget to take the next legislative step toward a long-awaited open banking system.

”After years of discussion and consultation, we need to get it done. This means legislation and a timeline for going live.”
Andrew Graham,
Fintechs Canada

Multiple FinTech leaders BetaKit spoke with under condition of anonymity have been told by government officials and the industry associations that lobby them to expect the next phase of open banking legislation in the Nov. 4 federal budget. Phase Two of the framework deals with common rules and an accreditation plan for financial services providers.

Sources also indicated that the upcoming budget will likely contain “language” around stablecoins, a digital asset that is typically pegged to a currency such as the United States dollar.

Department of Finance spokesperson 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 finance minister, suggested today in an X post that the government is committed to open banking as it prepares its budget.

“At this year’s Fintech Leaders’ Summit, I reaffirmed our government’s commitment to building a more innovative, competitive, and inclusive financial sector,” Turnbull wrote, using the hashtag #Budget2025.

“From modernizing payment systems to advancing frameworks for consumer-driven banking and digital assets, we’re laying the foundation for a stronger, more connected economy.”

FinTech leaders have been calling for a consumer-directed finance system for years, a measure they say will improve financial service competition and lower prices for Canadians. Proponents argue that open banking would establish a secure way for customers to share their financial information with third parties and more easily switch from banks to other financial service providers. Open banking would, in theory, also eliminate the need for an insecure data-sharing practice known as “screen-scraping,” which requires consumers to provide their online banking username and password to access financial data.

“Like many in the FinTech sector, I’m looking for the budget to make meaningful progress on open banking,” Borrowell CEO and Fintechs Canada board chair Andrew Graham told BetaKit. ”After years of discussion and consultation, we need to get it done. This means legislation and a timeline for going live.”

A long and winding road to open banking

Canada’s path to open banking began with a review announced in the 2018 federal budget. Despite an initial piece of legislation introduced in 2024, the system has yet to come into effect after years of consultations and delays.

The federal government’s first open banking review took place in 2019 to assess its utility to Canadians. A resulting report recommended moving forward on a framework, and further talks discussed concerns around consumer data rights and mitigating privacy and data security.

It then took two years for the Advisory Committee on Open Banking to release a final report on the subject, a “glacial pace” that frustrated many in the FinTech industry. In 2022, the federal government followed through on recommendations by establishing working groups and appointing Abraham Tachjian as its open banking czar to design and implement parts of the system, including an accreditation framework. The advisory committee recommended that the initial phase of open banking would become operational by January 2023.

When the 2023 federal budget came and went with no update on an open banking timeline, a group of Canada’s largest FinTech companies launched a public advocacy campaign to push for faster movement on the file.

Open banking primer

Canada has been on a long and winding path toward open banking since 2018. This collection of stories will catch you up on progress to date:

The feds eventually introduced the Consumer-Driven Banking Act in its 2024 budget, which appointed the Financial Consumer Agency of Canada (FCAC) to develop rules and oversee implementation for an open banking system. At the time, the feds said a “second piece of legislation” would be tabled in the fall to flesh out the remaining elements of the framework.

But the 2024 Fall Economic Statement (FES) brought more delays, alongside the departure of finance minister Chrystia Freeland, with Prime Minister Justin Trudeau to closely follow. Despite promises that the framework would be implemented in 2025, the FES delayed the system’s launch to 2026.

In June, FCAC commissioner Shereen Benzvy Miller said the agency is working on a consumer awareness strategy, an accreditation process, and common rules for open banking. Benzvy Miller added that the FCAC can “look forward” to the second half of an open banking framework from the Department of Finance, but did not provide a timeline.

After Prime Minister Mark Carney was elected this spring, FinTech leaders expressed cautious optimism about the new leader’s ability to deliver payment system modernization through open banking and real-time rail (RTR), another repeatedly delayed initiative.

Many FinTech and cryptocurrency leaders have called for the Canadian government to develop a framework around stablecoin use as the digital asset grows in popularity. The Bank of Canada has also said the government should consider developing stablecoin regulation.

In an op-ed for BetaKit, Coinbase Canada CEO Lucas Matheson called for Canada to develop its own stablecoin infrastructure to avoid being reliant on US-made payment rails. “The choice isn’t just about whether we will lead in the future of digital finance, it’s about avoiding being left behind,” he wrote.

Feature image courtesy Francois-Philippe Champagne via LinkedIn.