Open Banking in Canada: What’s Taking So Long and What to Do Now

While global markets accelerate adoption of open banking and pay-by-bank models, Canada is still in the early innings. Regulatory uncertainty, legacy infrastructure, and deeply entrenched payment preferences have slowed momentum despite growing demand for faster, more secure ways to transact.

But that’s starting to shift.

With renewed commitment from the federal government and rising pressure from fintech innovators, Canada may finally be poised for progress. For Canadian technology and payment leaders, the question is no longer if open banking will take hold, but how to prepare for it now.

In this post, we’ll explore:

• Why Canada’s open banking efforts have lagged behind global peers
• What’s changing (especially post-Carney announcements)
• The shared implementation challenges businesses need to navigate
• Why a strategic, partnership-driven approach is essential
• How DC Group is already helping businesses future-proof

Before we dive in: if you’re unsure what open banking is, read this article to get caught up, then meet us back here. 

Why Canada Has Lagged Behind in Open Banking

While countries like the U.K., Australia, and Singapore have embraced open banking with clear rules and real results, Canada is still figuring things out. We've made some progress, but not enough to keep pace with global peers.

So what’s holding us back?

• The rules aren’t finished yet
  Canada passed early legislation in 2024 giving the Financial Consumer Agency of Canada (FCAC) the job of overseeing open banking, but that was just step one. We’re still waiting for the second half of the legislation to be introduced, which would lay out the rules, set up accreditation, and allow the system to function. Until that happens, everything’s on pause.
• Election delays and shifting priorities
  After a federal election and with no spring budget this year, some worry the government has lost momentum. While the Carney administration says it’s still committed to open banking, industry leaders are cautiously optimistic.
• Big banks aren’t feeling the pressure
  Canada’s banking system is highly concentrated. Without a strong push from regulators, many large institutions aren’t in a hurry to change how things work.
• Canadians haven’t demanded it—yet
  While they value security and convenience, most Canadians are still unfamiliar with the term “open banking,” let alone its benefits. Without widespread understanding, consumer-driven demand has remained quiet.

Still, there are encouraging signs. The Carney administration says it will introduce the remaining legislation “at the earliest opportunity,” and the FCAC is already working on key components, like a public registry of trusted fintechs and a clear set of rules.

For fintech leaders, now is the time to prepare. When things do start moving, those who’ve already laid the groundwork—technically and strategically—will be in the best position to lead.

What Canada Can Learn from Global Open Banking Models

Canada may be behind the curve, but we’re not starting from scratch. Other countries have already built working open banking systems, offering valuable lessons on what it takes to get it right.

Here’s what we can take away from their approach:

• Clear mandates create real momentum
  In the U.K., the government didn’t just recommend open banking, it required it through the Payment Services Directive (PSD2) legislation. That regulatory clarity gave banks and fintechs a clear path forward and removed a lot of the uncertainty that slows things down.
• Collaboration makes a difference
  In Singapore and Hong Kong, open banking was rolled out in close partnership between regulators, banks, and fintechs. They established comprehensive frameworks, like Singapore’s Monetary Authority of Singapore and Hong Kong’s Open API Framework, demonstrating a strong commitment to innovation. 
• Strong frameworks build consumer confidence
  In many global models, consumers must actively consent to share their data, and they can choose exactly what’s shared and for how long. That level of transparency and control builds trust, which is key for adoption—especially when Canadians have polarizing views on payment innovations because of security concerns.
• Interoperability is everything
  Successful countries focused early on common technical standards and secure APIs. That made it easier for banks and fintechs to integrate quickly and ensured that systems could grow without breaking.

Canada has the chance to benefit from these lessons without having to go through as much trial and error. But it will take decisive action, clear rules, and industry-wide collaboration to make open banking work here.

Why Industry Collaboration is the Key to Preparation

There’s no question that open banking comes with challenges—regulatory grey areas, legacy infrastructure, privacy concerns, and the need for new processes across the business. But waiting for everything to be perfectly in place isn’t the answer.

The most effective way to prepare? Don’t go it alone.

Instead of building open banking capabilities from the ground up, Canadian businesses should look to trusted partners with proven infrastructure and deep regulatory experience. This partnership-led approach will help:

• Reduce implementation risk
• Accelerate time to market
• Ensure compliance with emerging standards
• Ease the operational lift for internal teams

Whether your focus is on integrating modern APIs, improving data governance, or building customer trust through secure authentication, a strong payments partner can help your team scale thoughtfully without starting from scratch.

At Digital Commerce Payments, we’ve seen how collaboration fuels innovation. We work closely with banks, fintechs, and technology platforms to deliver flexible, future-ready payment solutions that support open banking goals, even in a shifting regulatory environment.

The Future of Payments in Canada Starts Now

Open banking is a real opportunity to reshape how payments work in Canada. Lower fees. Faster settlement. Greater transparency. Stronger customer trust. But it’s not a switch you flip overnight.

For Canadian fintechs, eCommerce leaders, and payment decision-makers, the smart move is to start now—not by building everything in-house, but by working with trusted partners who can help you navigate complexity and build a scalable, secure foundation for what’s next.

At Digital Commerce Payments, we’re already helping businesses explore pay-by-bank models, modernize their infrastructure, and stay ready for what’s coming. Because we believe that open banking will unlock better outcomes for both your business and its Canadian customers. 

Want to stay ahead of the curve?

Follow us on LinkedIn and Facebook, and subscribe to our newsletter as we continue to cover the evolving Canadian fintech landscape and what it means for the future of payments.