The Financial Data and Technology Association of North America (FDATA) has called on Canada to “hasten” the delivery of Open Finance.
The message from the trade association follows Canada’s 2025 Pre-Budget Consultation, a process where the government seeks input from the public and stakeholders on economic priorities for the upcoming federal budget.
According to the FDATA, Canada is “plagued by delays”. The government has been encouraged to overcome this by prioritising a comprehensive Open Finance regime for consumers and small and medium businesses.
In its response to the budget, the trade association highlighted Canada’s global position when it comes to OpenBanking, stating that the delivery would “align Canada’s financial data regime with those implemented in virtually every other G-7 nation”.
Further emphasising the delays the country has placed on the sector, the organisation recalls that it took more than six years of consultations between the government and stakeholders to include an Open Banking framework in last year’s budget.
As noted by the FDATA, the majority of G-7 countries have established Open Banking frameworks. The UK, often regarded as the most developed in this sector, recently announced a new independent operator for variable recurring payments, for example.
The benefits of Open Finance were stressed in the association’s message to the Canadian government. However, the FDATA believes there needs to be more clarity in ensuring that all small business accounts are considered within the scope of the first phase of the country’s framework.
“Such an approach is entirely consistent with the government’s stated intentions in delivering open banking in Canada, and would ensure that small businesses, which employ 98% of all working Canadians, have the same opportunities to benefit from open banking-enabled tools, products and services as will consumers,” the FDATA wrote.
Additionally, the organisation raised concerns over funding of the Financial Consumer Agency of Canada (FCAC), which the government has tasked with overseeing the Open Banking framework.
Open Banking’s ‘transformative’ power
Open Finance, as mentioned by the FDATA, presents an opportunity to transform the financial services landscape for Canadian consumers and businesses by enabling greater access to financial data.
The association believes that this transformation would have a positive and far-reaching impact, making a wider range of financial products and services accessible to consumers and empowering them to make more informed financial decisions.
The FDATA stated that consumers would not only gain better control over their financial data, including information from credit bureaus and utilities, but would also be able to form a stronger relationship with their finances.
While recognising the potential, the FDATA also pointed out that “changes in financial sector policy take time”, especially in Canada. The association pointed out that “the number of interested stakeholders is significant, entrenched interests remain as barriers to change, and outside factors can lead to significant time delays.”
As a result, it suggests the country should begin thinking about what its Open Finance regime will look like, stating: “For Canada to get it right, the government must begin outlining its open finance vision as soon as possible.”
