FDATA recommends Canada’s Budget 2025 outlines Open Finance ‘vision’

The Financial Data and Technology Association of North America (FDATA) has urged Canada’s Department of Finance to “hasten” the delivery of Open Finance and to “adjust” the initial design of the regime to promote competition and innovation, ahead of Budget 2025.

The trade association made both recommendations in its written submission in response to the Department of Finance’s 2025 pre-budget consultation.

FDATA North America’s fintech members collectively serve millions of Canadian consumers and SMEs by providing financial management and accounting tools, digital banking services, access to investment and savings platforms, affordable credit products, and other financial services.

It has recommended that the Government’s upcoming Budget sets out plans for the “rapid and well-governed implementation” of Open Banking in Canada, ensuring that both consumer and small business owners have “full access” to the benefits of the system, and that the growth of Canada’s innovation economy is “appropriately prioritized”.

FDATA North America stated that it would like to see, in Budget 2025, “clarifying language ensuring that all small business accounts are unequivocally considered within the scope of the first phase” of Canada’s Open Banking framework, to provide certainty among stakeholders.

It has also suggested that the upcoming Budget ensures the Financial Consumer Agency of Canada (FCAC), which has been tasked with oversight of the country’s Open Banking system, is provided with “sufficient funding”.

This will allow it to “attract civil servants with expertise” in the areas of financial technology, consumer-permissioned data and Open Banking, and to educate consumers and small businesses, according to FDATA’s written submission.

In addition, the Budget should ensure that the FCAC’s enforcement of compliance with Open Banking requirements is “appropriately tiered” to encourage innovation in Canada’s financial system.

FDATA North America’s second main recommendation is for Budget 2025 to outline Canada’s approach to Open Finance, which it has called “the next logical step after Open Banking, and the framework needed to truly unlock market innovation and competition to benefit Canadian consumers and businesses”.

The trade association wants to see the Canadian Government begin setting out its Open Finance vision “as soon as possible” and for Budget 2025 to “formalize this 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”.

FDATA North America concluded: “Budget 2024’s delivery of Canada’s initial Open Banking framework marked an important milestone in what has been a long, consultative journey. Budget 2025 should both ensure delivery of Open Banking in line with the government’s and the market’s expectations and build on this important progress.”

Steve Boms, executive director of FDATA North America, is speaking at Open Banking Expo Canada 2025 on June 17, in Toronto. Find out more and register to attend here.

Further reading: Fintechs Canada recommends Open Banking be expanded to all investment accounts