A revenue opportunity for banks & fintechs

As Canada inches closer to implementing Open Banking, industry experts, policymakers, and financial institutions are debating its impact, challenges, and future. Babu Nair, MD & CEO of Financial Technology Frontiers, sat down with Eyal Sivan, better known as Mr. Open Banking, to explore the current landscape, regulatory hurdles, and the road ahead for Open Banking in Canada.

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Babu Nair: Open Banking has been a long-discussed topic in Canada. Where does the journey stand today?

Eyal Sivan: Open Banking in Canada dates back to 2016, when early consortium efforts by banks like CIBC laid the groundwork. In 2017, the government released its first consultation paper, confirming Open Banking’s benefits. Since then, advisory committees, working groups, and an Open Banking Lead, Abraham Tatchian, have been appointed to move the process forward. In 2023, Open Banking received funding in Canada’s fall economic statement, and by 2024, the Consumer-Driven Banking Act was introduced as part of the Budget Implementation Act (BIA1).

Despite these developments, there is still no official timeline, no confirmed technical standard, and no concrete go-live date. Political uncertainty remains, with the Conservative Party advocating for faster implementation, while the Liberal government has been slower to act. However, since Open Banking has bipartisan support, progress seems inevitable.

What key obstacles are delaying Open Banking in Canada?

Canada faces 3 critical roadblocks. First, there is no standardized technical framework. Unlike the UK or Australia, which defined clear Open Banking structures early on, Canada has not finalized a common API standard, leaving banks and fintechs uncertain about integration.