Open Banking is “setting the stage for a banking revolution” that will create “real competition” to help “solve our monopoly problem in Canada”, Conservative MP Ryan Williams told delegates at Open Banking Expo Canada.
In his closing keynote, Williams, who is Shadow Cabinet Minister for Pan-Canadian Trade and Competition, promised that, should the Conservative Party of Canada be elected, it “will ignite Open Banking legislation to give Canadians financial freedom”.
The Canadian federal election will have to take place by October 2025.
Williams said that he put private members’ bill, Bill C-365, through the House of Commons “to ensure we had Open Banking legislation presented by this government within six months”.
In March, Bill C-365 passed a second reading in the House of Commons, with 172 votes in favour, versus 150 votes against.
Speaking at Open Banking Expo Canada, Williams pointed out that six banks control 90% of Canada’s finances and that Canada has close to 1,000 fintechs, more than 100 of which are in the Open Banking space.
“Every day that we wait for Open Banking regulation in Canada… you face increasing challenges in securing local funding, struggle to build consumer trust without regulatory support, and lose competitive ground to international competitors who already benefit from established Open Banking frameworks,” he told delegates.
“Without the regulatory clarity and support, you will find it difficult to innovate and scale effectively, potentially missing out on crucial partnerships and marketing opportunities.”
Talking about the UK’s Open Banking implementation, Williams said: “The potential GDP impact from the UK having Open Banking is estimated at between 1% to 1.5% of GDP by 2030. By mid-2024 around 12% of digitally-enabled consumers and 17% of small businesses were active users of Open Banking.”
Williams said that, with the advent of Open Banking, “we’re not just reshaping our financial landscape to be more inclusive, we’re setting the stage for a banking revolution” by “making sure that the big banks serve the customers, rather than the other way around and create real competition to solve our monopoly problem in Canada”.
He also addressed the delay to Canada’s instant payment system, Real-Time Rail (RTR).
Payments Canada announced in April that the final part of the build of RTR had resumed, with a timeline that anticipated industry testing into 2026.
Williams said: “With the advent of Open Banking and initiatives like Canada’s Real-Time Rail, we’re headed towards a future where financial transactions are as quick and seamless as sending a text message.”
