In a bold move that could reshape Canada’s financial landscape, the Financial Data and Technology Association (FDATA) has submitted a comprehensive pre-budget proposal to the Canadian Finance Committee aimed at accelerating the country’s open banking framework by 2025.
The organization, representing financial technology leaders across Canada, is pushing for concrete action following years of consultations and delays that have left Canada trailing behind other global economies in the open banking revolution.
“We’re at a critical juncture where Canada must decide if it wants to be a leader or a follower in financial innovation,” said Steve Boms, Executive Director of FDATA North America. “Our proposal outlines a clear path forward that balances consumer protection with the need for technological advancement.”
The submission focuses on three key pillars: establishing a regulatory framework with clear implementation timelines, securing dedicated funding for the initiative, and mandating participation from all federally regulated financial institutions. According to FDATA’s economic analysis, a properly implemented open banking system could add billions to Canada’s GDP while creating thousands of jobs in the financial technology sector.
What separates this proposal from previous attempts is its emphasis on consumer data rights. The framework would give Canadians unprecedented control over their financial information, allowing them to securely share data between institutions and access innovative services that could lower costs and improve financial outcomes.
“Every day of delay is costing Canadian consumers and businesses,” noted financial technology expert Maya Rajeev, who was not involved in drafting the proposal but has reviewed its contents. “When you look at markets like the UK and Australia where open banking is operational, you see lower fees, better lending rates, and more personalized financial products.”
The Finance Committee will review the submission as part of its pre-budget consultations, with a decision expected before the end of the fiscal year. Meanwhile, Canada’s major banks have expressed cautious support, though concerns about implementation costs and security protocols remain points of contention.
As global financial markets increasingly embrace open banking principles, the pressure on Canadian lawmakers to act has intensified. FDATA’s proposal represents perhaps the most comprehensive roadmap yet for bringing Canada into alignment with international standards while addressing uniquely Canadian concerns around privacy and data sovereignty.
The question now facing policymakers isn’t whether Canada should adopt open banking, but whether it can afford to wait any longer.
