The Federal government has committed to “advancing” Open Banking in Canada by introducing legislation to complete the Consumer-Driven Banking Act and extending the framework to include payment initiation by mid-2027, while oversight will move to the Bank of Canada.
It was among a series of announcements made in Budget 2025 under the heading “supporting innovation and global competitiveness”.
The government has said it will “accelerate the next phase of consumer-driven banking, including legislating the ability to direct actions, such as switching accounts or making bill payments, or ‘write access,’ by mid-2027, once Canada’s Real-Time-Rail project is live and in widespread use”.
The ecosystem called it a “win” for consumers and small businesses, and said the announcement in Budget 2025 represented “real momentum” for consumer-driven banking.
The Canadian government also confirmed it will introduce a data-mobility right in the Personal Information Protection and Electronic Documents Act to facilitate economy-wide data sharing.
Oversight of the Consumer-Driven Banking Act will shift from the Financial Consumer Agency of Canada (FCAC) to the Bank of Canada, “building on its oversight activities of payment service providers”.
The Bank of Canada’s mandate to supervise PSPs under the Retail Payment Activities Act (RPAA) came into effect on September 8, this year.
The central bank is now supervising close to 1,500 PSPs that have applied under the RPAA for their compliance with regulatory requirements to manage risks and safeguard end-user funds.
The Budget also provided an update on funding Open Banking in Canada, with the Bank of Canada to “retain up to $19.3 million over two years on a cash basis from its remittances to the Consolidated Revenue Fund to support implementation”.
The remaining funding that had been previously allocated to the FCAC in the 2024 Fall Economic Statement, amounting to $36.9 million over two years, will not be spent, it was announced.
Budget 2025 also reiterated the government’s support for the launch of Canada’s “nation-building payments infrastructure”, the Real-Time-Rail, in 2026.
Delivering Budget 2025, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue called it an “investment budget”.
“We are making generational investments to meet the moment and ensure our country doesn’t just weather this moment but thrives in it. This is our moment to build Canada Strong and our plan is clear – we will build our economy, protect our country, and empower you to get ahead,” he said.
The ecosystem reacts
“The Canadian Budget marks a pivotal step forward on the road to Open Banking. By committing to the next phase, the government is signalling its support for a more inclusive and competitive financial ecosystem,” said Adam Cox, co-founder and managing director of Open Banking Expo.
“I’m thrilled to see Canada moving forward and look forward to supporting this progress through dialogue and collaboration at Open Banking Expo Canada on March 5, 2026.”
“This announcement represents real momentum for CDB in Canada,” added Steve Boms, executive director of FDATA.
“By streamlining oversight of the fintech ecosystem under the Bank of Canada and committing to write access as the next phase of implementation, the government is moving closer to ensuring Canadians and small businesses have secure, reliable, and affordable ways to access and share their financial data – helping drive innovation and inclusion across the financial sector.”
“This is a win for consumers, small businesses, innovators and yes, even the incumbent financial sector,” said the Open Finance Network of Canada (OFNC) board.
“We’ve been proud to stand at the centre of this conversation since 2019, advocating for a framework that puts consumers in control of their financial data.”
In a post on LinkedIn, Adriana Vega, executive director of Fintechs Canada, highlighted “a bolder consumer-driven banking framework” as one of the key Budget measures that fintechs are excited about, along with lower switch costs, Federal regulation for stablecoins, and greater fee transparency.
“We are especially thrilled to see the Federal government setting out a plan to foster greater competition, innovation, and efficiency in Canada’s financial sector,” wrote Vega.
“These commitments are the result of years of collaboration between policymakers and industry. Fintechs Canada has long advocated for these changes, which is why we are very pleased to see such big and bold commitments. Good policy takes time, and this Budget marks a major step forward, setting the stage for huge momentum.”
Find out more about Open Banking Expo Canada 2026 and register to attend here.
