Fintechs Canada has called on the Ontario government to “actively advocate” for extending Open Banking requirements to all securities registrants and investment accounts, to avoid uncertainty and ensure all Canadians can “fully benefit” from Open Banking.
It is one of two recommendations made by Fintechs Canada – a not-for-profit association which acts as the unified voice for fintech companies in Canada – in its written submission to the Ontario government’s 2025 Budget consultations.
Alex Vronces, executive director, Fintechs Canada
Alex Vronces, executive director at Fintechs Canada, wrote: “The first iteration of Canada’s Consumer-Driven Banking Act encompasses both registered and non-registered investment accounts.”
In its submission, Fintechs Canada recommends that, to avoid any ambiguity, the government “should explicitly state in regulations the investment accounts that are included in the scope of the act”, given that online banking portals vary by institution.
“If any types of investment accounts are not ‘phased in’ when the consumer-driven banking system goes live, the government should provide a timeline as to when these accounts will be phased in. The timing should be no longer than 12 months after the consumer-driven banking framework comes into force,” Vronces wrote.
In the 2024 Fall Economic Statement, the Department of Finance confirmed that the framework for consumer-driven banking will be finalised in 2025, ready to go live the following year.
Finance Canada set out its initial Open Banking framework in Budget 2024 and passed the Consumer-Driven Banking Act in June last year, which included the foundational elements of scope and technical standards and designated the Financial Consumer Agency of Canada (FCAC) as the lead agency.
According to Statistics Canada, in 2020, 58% of Canadian families contributed to one or more of the three main types of registered savings accounts, including registered retirement savings plans and tax free savings accounts.
With more than half of Canadians holding some form of investment account, Fintechs Canada said that “many could greatly benefit from the introduction of Open Banking”.
It is now urging the Ontario government, along with the Ontario Securities Commission (OSC), to “play an active role in advocating for the extension of Open Banking requirements to all investment accounts and securities registrants”.
The second recommendation in Fintechs Canada’s submission is the development of “a coordinated regulatory framework for fiat-backed stablecoins in Canada”, citing their growing use as a payment method.
Fintechs Canada urged the Ontario government and the federal government to “collaborate to ensure that the financial sector is more effective for Canadians”.
Further reading: Fintechs Canada appoints new board ahead of election year
Find out more about Open Banking Expo Canada 2025, which takes place on June 17 in Toronto, as Canada’s Open Finance journey accelerates, and get your tickets here.
