Canada's Budget 2025, as proposed by FDATA, unfolds a blueprint for Open Finance.
The Financial Data and Technology Association of North America (FDATA) has called on the Canadian Government to prioritise the implementation of Open Finance in Budget 2025, setting the stage for a secure, SME-focused, and consumer-driven financial ecosystem.
In a submission to the Department of Finance's pre-budget consultation, FDATA has recommended a clear, SME-focused open banking plan with firm rollout dates. This plan would incorporate small business accounts alongside personal banking, as part of the country’s emerging Consumer-Driven Banking framework set to launch around early 2026.
FDATA's recommendations emphasise the importance of safe, consent-based data sharing, moving away from risky practices like screen scraping, with security and trust as core principles. The association believes that this approach is the next logical step after Open Banking.
Key specifics include the integration of small and medium-sized enterprises (SMEs) in the open banking initiative to enhance services for Canadian SMEs. The Department of Finance has outlined timelines, with pilot programs expected in early 2026, providing clarity and predictability around implementation.
Strict Canadian-led regulatory oversight is another crucial aspect, ensuring Canadians maintain full control over what financial data is shared, with the ability to start or stop sharing at any time, reinforcing consumer data security and privacy.
Furthermore, FDATA has proposed that the Financial Consumer Agency of Canada (FCAC) is provided with sufficient funding to educate consumers and small businesses about the benefits of Open Banking. The proposed funding is also intended to attract experts in financial technology, consumer-permissioned data, and Open Banking.
The potential benefits of Open Banking, as outlined by FDATA, include faster loan approvals, smarter accounting tools, easier comparison of financial services, and improved financial advice, particularly valuable for businesses.
Steve Boms, executive director of FDATA North America, will be speaking at Open Banking Expo Canada 2025 on June 17, in Toronto. He will discuss the importance of Open Finance and the role it plays in catalyzing economic growth and innovation through digital finance reforms.
FDATA North America believes that the framework for Open Finance is needed to "truly unlock market innovation and competition to benefit Canadian consumers and businesses." The association wants consumers and small business owners to have full access to the benefits of Open Banking. They also believe that Budget 2025 should ensure delivery of Open Banking in line with the government's and the market's expectations.
[1] FDATA North America (2025). Pre-budget consultation submission. [Online]. Available: https://fdata.org/wp-content/uploads/2025/03/FDATA-NA-Pre-Budget-Consultation-Submission-2025.pdf [2] Canadian Bankers Association (2024). Open Banking in Canada: A Vision for the Future. [Online]. Available: https://www.cbanet.ca/uploads/documents/Open_Banking_in_Canada_A_Vision_for_the_Future.pdf [3] Interac (2023). Open Banking in Canada: A Guide for Financial Institutions. [Online]. Available: https://www.interac.ca/sites/default/files/2023-05/Open-Banking-in-Canada-A-Guide-for-Financial-Institutions.pdf [4] Government of Canada (2023). Budget 2023: A Plan to Grow Our Economy and Make Life More Affordable. [Online]. Available: https://www.budget.gc.ca/2023/docs/plan/budget-2023-en.pdf
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