Canada's Budget 2025, as suggested by FDATA, advocates for an Open Finance 'vision'
The Financial Data and Technology Association of North America (FDATA) has called on Canada's Department of Finance to expedite the delivery of Open Finance, a logical step following Open Banking, which is expected to unlock market innovation and competition to benefit Canadian consumers and businesses.
In a written submission to the Department of Finance's 2025 pre-budget consultation, FDATA North America made several recommendations aimed at fostering an appropriate environment for innovation in Canada's financial system.
One of the key recommendations was for the Financial Consumer Agency of Canada (FCAC) to be provided with sufficient funding. This proposed funding is intended to attract civil servants with expertise in financial technology, consumer-permissioned data, and Open Banking. The funding is also intended to educate consumers and small businesses about the benefits and workings of Open Finance.
FDATA North America also suggested adjusting the initial design of the Open Finance regime to promote competition and innovation. The association emphasised the need for an appropriately tiered enforcement of compliance with Open Banking requirements to encourage innovation.
The association's fintech members serve millions of Canadian consumers and Small and Medium Enterprises (SMEs), and they want these consumers and small business owners to have full access to the benefits of the Open Banking system. FDATA North America has recommended setting out plans for the rapid and well-governed implementation of Open Banking in Canada.
In addition, FDATA North America has proposed that Budget 2025 should ensure delivery of Open Banking in line with the government's and the market's expectations and build on the important progress made in Budget 2024. The association also recommended clarifying language in Budget 2025 ensuring that all small business accounts are within the scope of the first phase of Canada's Open Banking framework.
FDATA North America has also urged the Canadian Government to begin setting out its Open Finance vision "as soon as possible". The association's executive director, Steve Boms, will be speaking at Open Banking Expo Canada 2025 on June 17, in Toronto.
Budget 2025 is expected to formalise an iterative process and stake out a timeline under which additional types of financial accounts will be added to the framework first implemented through Budget 2024. Moreover, there is a recommendation from Fintechs Canada for Open Banking to be expanded to all investment accounts.
The acceleration of Open Finance in Canada is seen as a critical step towards fostering a more competitive and innovative financial sector. FDATA North America's recommendations aim to ensure that the benefits of Open Finance are realised by consumers and businesses across the country.
