The Government of Canada is developing an Open Banking framework, also known as Consumer‑Driven Banking, which is expected to be introduced later in 2026. Participation will be mandatory for federally regulated banks and optional for other financial institutions like credit unions.
Open Banking allows consumers to securely share their banking data with third‑party providers, but only with their explicit consent. The goal is to give individuals greater control over their financial information while supporting innovation and improved financial services.
Potential benefits include better visibility of finances through account aggregation, more personalized products, faster service delivery, and increased competition that may lead to improved fees and features. Open Banking is already in use in several other countries, including the U.K. and parts of Europe.
Though Open Banking offers significant benefits, there are important areas where the government can improve its framework to enhance consumer protections. Key focus areas include bolstering data privacy and security measures to guard against misuse, and increasing consumer education to help individuals manage data-sharing consent confidently. Ensuring third-party providers meet rigorous security standards and addressing the risk of over-borrowing are also essential steps to make Open Banking safer and more sustainable for all users.
