Canada’s Open Banking future hinges on collaboration, standards and consumer trust, say experts at OBExpo Canada 2025

At the 2025 Open Banking Expo Canada, a high-powered panel of experts convened for a landmark discussion titled “Powerhouse Debate: Canada’s Open Banking Revolution: Accelerating progress and tackling challenges.” Moderated by Mauricio Deutsch, senior vice president, banking & capital markets at GFT, the session examined the progress, priorities and pitfalls as Canada races to implement Open Banking by early 2026.

The debate featured a dynamic mix of voices from across the ecosystem: Karnan Ariaratnam (Symcor), Alana Barnes (Canadian Bankers Association), Judy Bei (Citi), Natacha Boudrias (National Bank of Canada), and Samantha Tom (Borrowell). Together, they delivered a clear message: momentum is building, but execution, interoperability and trust will make or break Canada’s Open Banking ambitions.

Consumer-Driven Banking Act sets the stage

Canada’s Open Banking framework took a significant step forward last year with the passage of the Consumer-Driven Banking Act within Bill C-69. The legislation mandates read-only data sharing for designated entities, annual consent renewal, and a standardised API framework. A technical standards body will guide implementation, while the Financial Consumer Agency of Canada (FCAC) has been appointed as the oversight authority.

Yet the panel stressed that key components of “Part Two” of the legislation – accreditation criteria for fintechs, liability frameworks for fraud and outages, and finalised technical standards – remain in development. These must be completed in 2025 to support a full launch in early 2026.

“The industry is not waiting for legislation,” noted Deutsch. “Pilots are underway. APIs are being built. But we need the clarity and rules of the road to unlock full participation.”

Standards: the runway for takeoff

A central theme of the debate was the critical role of standardisation in achieving interoperability, reducing costs and ensuring security. Both Boudrias and Ariaratnam emphasised that API standards are not bureaucratic roadblocks but enablers of scale and consistency.

“Standards are not red tape – they’re a runway for takeoff,” said Boudrias. “Interoperability is essential if we want consumer-driven banking to be bigger than banking.”

Judy Bei of Citi echoed this sentiment, highlighting that standardised APIs – like those being adopted in Canada through the Financial Data Exchange (FDX) – can replace fragmented, bilateral data-sharing models that are costly and inefficient.

Competition and inclusion: addressing the two-tier risk

Samantha Tom of Borrowell pointed to market concentration as a key barrier to innovation, with over 90% of assets controlled by Canada’s Big Six banks. She called for tiered accreditation to allow smaller fintechs to participate without facing disproportionate compliance burdens.

“A one-size-fits-all approach risks creating a two-tiered ecosystem,” said Tom. “A risk-based model can ensure inclusion without compromising safety.”

Trust and awareness: the cultural shift ahead

Beyond technical readiness, panellists agreed that consumer trust and awareness will be paramount. Boudrias framed Open Banking as “a cultural shift,” not just a technical one, stressing that trust must be earned daily by institutions.

Ariaratnam added that consistent user experiences and transparency around consent will be key to consumer adoption. “It’s not about Open Banking. It’s about solving real problems – saving people time or money – and doing it in a way they can trust.”

Tom highlighted international examples like the UK tax authority’s integration with Open Banking as a model for building public confidence through trusted entities.

Innovation through use cases

When asked about high-impact use cases, panellists pointed to areas such as:

• Account aggregation and personal financial management

• Seamless account switching and digital KYC

• Fraud prevention using multi-bank transaction data

• Smarter credit assessments – especially for newcomers and renters

Boudrias also emphasised support for entrepreneurs and SMEs as a largely untapped opportunity area.

National Bank’s recent partnership with Flinks was cited as a practical example of progress. Under this arrangement, third parties like Wealthsimple can connect securely via Flinks, provided they meet National Bank’s privacy and consent requirements.

Cross-border interoperability with the US

Interoperability with US systems was flagged as both an opportunity and a challenge. Bei warned that without harmonised standards and accreditation frameworks, partnerships can take years to form. However, Canada’s adoption of FDX – a widely used US standard – is seen as a positive step toward alignment.

“Eventually, Open Banking won’t be domestic – it will be cross-border,” said Bei. “We need to be thinking globally now.”

Ecosystem collaboration is critical

The panellists repeatedly called for a “made-in-Canada” approach rooted in collaboration between banks, fintechs, regulators and consumers.

“We must leverage existing oversight frameworks and align privacy rules across federal and provincial jurisdictions,” said Barnes. “Consistency is key.”

Looking ahead: delivery is what matters now

Despite Canada’s relatively slow start compared to markets like the UK or Australia, there was optimism that meaningful delivery is on the horizon.

“We’ve seen coordination. We’ve seen expertise built. What we haven’t yet seen is delivery,” concluded Boudrias. “That’s what matters now.”

With bipartisan political support, an engaged ecosystem, and growing consumer demand, Canada appears closer than ever to realising its Open Banking vision – but only if momentum continues through 2025.

As Deutsch reminded attendees: “The components are here. The ingredients are ready. Now it’s time to cook.”