Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Open Banking Delayed But Back in the Legislative Radar
Open Banking | June 17, 2025
Federal Government Recommits to Open Banking Legislation at 'Earliest Opportunity'
Today at Toronto's Open Banking Expo, the Canadian federal government says they will introduce the long delayed open banking legislation 'at the earliest opportunity'. The Financial Consumer Agency of Canada (FCAC) responsible for implementing and regulating Open Banking in Canada confirmed that Ottawa remains committed to building the infrastructure for consumer-driven banking, despite momentum stalling after a Spring without a federal budget or any kind of legislative update.
Secure Data Sharing, No More Screen Scraping
Open banking allows Canadians to securely share their financial data with apps and services outside their traditional banks. Instead of screen scraping which is a risky process where users give third parties their login credentials for use on their behalf, open banking would give users a more control over what data is shared, with whom, and for how long.
Key Elements Still Missing
In December 2024, Canada announced that open banking would be delayed until 2026. Now, according to the Department of Finance, the remaining parts of Canada's Open Banking Framework will be introduced as soon as possible (not a specific date or deadline). This includes the process for accrediting service providers, establishing common rules for data access, and creating a public registry.
The FCAC is preparing the groundwork by developing a public registry of accredited fintech firms and collaborating with Finance Canada to finalize operating rules, but let's be honest here. Without the final legislation, the FCAC is limited in what it can do.
See: Open Banking: Revolutionizing Financial Data Sharing
While Prime Minister Mark Carney and the Liberals returned with a minority government, open banking unfortunately wasn't included in the party's platform, and given the delays following the Spring 2025 election and absence of a Spring budget, more delays were expected despite advocates remaining optimistic given the change in Canada's leadership and need to improve productivity and economic strength.
NCFA Urges Government to Complete the Framework
The National Crowdfunding & Fintech Association of Canada (NCFA) believes that consumer-driven finance is a key milestone for driving innovation, competition, and financial inclusion in financial services. NCFA's Executive Director/CEO, Craig Asano said:
“Consumer-driven banking is not just a policy item, it’s critical infrastructure for unlocking productivity and creating an ecosystem that works better for consumers and fintech innovators. Canada cannot afford another year of delay.”
While some fintechs and financial institutions have gone ahead and prepared for open banking the best they can ahead of final legislation, others are waiting for clarity from the Canadian government before moving forward, especially considering there have been many years of delay.
Conclusion
Open Banking could transform Canada's financial sector, making it easier for consumers to access improved products and services. It would also improve competition by enabling qualifying fintech firms to connect directly to consumer data in a secure and regulated way.
See: Are Finfluencers in Trouble or Just Getting Regulated?
However, simply saying that Open Banking will be implemented 'as soon as possible' without committing to a specific date, Canada continues to fall behind other jurisdictions of its peers.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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