Canada has reached an important milestone in its financial sector evolution. On March 26, Budget 2025, titled Canada Strong, received Royal Assent, bringing Bill C-15 into law. At the heart of this legislation is the Consumer-Driven Banking Act, which finally gives legal shape to open banking in Canada and sets the direction for open finance and broader data sharing in the years ahead.
While the bill covers a wide range of reforms aimed at strengthening the financial system, most industry conversations point to consumer-driven banking as the most significant development, along with the move toward regulating stablecoins. After years of consultations and policy discussions, Canada has now made a clear commitment to building a secure and structured data-sharing ecosystem.
From discussion to execution
For a long time, open banking in Canada was stuck in consultation mode. With the passage of the Consumer-Driven Banking Act, the focus now shifts to execution.
The framework establishes the right for consumers and businesses to securely share their financial data. It also places oversight with the Bank of Canada, linking this initiative closely with the country’s broader payments modernization efforts. Over time, this is expected to expand into wider data portability, moving beyond banking into a more comprehensive open finance environment.
This centralized oversight model is a notable choice. It could help Canada move faster and maintain consistency, though it also places significant responsibility on a single regulator.
What still needs to be built
Despite the progress, much of the real work is just beginning. Several critical elements are still to be defined, including:
- Technical standards such as APIs and data formats
- Accreditation processes for third-party providers
- Clear liability frameworks across participants
- Consistent and user-friendly consent mechanisms
Banks have been clear in industry forums that liability and security clarity will be essential before scaling. Fintechs, on the other hand, are eager to see faster timelines so Canada does not fall behind other markets.
Impact across the ecosystem
Banks
Banks are preparing for a shift in how they engage customers and partners. Open banking introduces competition, but it also creates opportunities to build stronger digital ecosystems.
The immediate focus is on infrastructure readiness, risk management, and partnership strategies. Many banks are expected to play an active role in shaping standards to ensure the system remains secure and resilient.
Credit Unions
Credit unions may find this to be a timely opportunity. Combined with other provisions in Bill C-15 that support their expansion into the federal framework, open banking can help them compete more effectively.
Access to shared data and fintech partnerships could allow credit unions to offer more advanced digital services without heavy investments in technology.
Fintechs
For fintechs, this is a major unlock. Access to standardized financial data can drive innovation across lending, payments, and personal finance tools.
At the same time, the environment becomes more regulated. Accreditation, security expectations, and compliance requirements will increase. Many fintechs will need to adapt from operating on the edges of the system to becoming part of its core.
Payments and Digital Assets
The inclusion of stablecoin regulation alongside open banking signals a broader shift in how Canada is thinking about payments.
With data sharing, real-time payment initiatives, and digital assets all evolving together, there is potential for a more connected and flexible payments ecosystem. This creates opportunities for both established players and new entrants.
Insurance
While insurers are not directly included in the current phase, they are watching closely. As open finance develops, insurance could be one of the next sectors to integrate.
Access to financial data could support more personalized products, improved underwriting, and closer integration with banking and fintech platforms.
A more connected financial system
One of the more important aspects of this legislation is how it connects different parts of the financial system. By aligning consumer-driven banking with payments modernization and future digital asset frameworks, Canada is taking a more integrated approach.
This could help avoid the fragmentation seen in some other markets and create a more cohesive system over time.
Recognizing the effort behind the legislation
The passage of Bill C-15 reflects years of work across government, regulators, and industry participants. Teams at Finance Canada and the Bank of Canada have played a central role in bringing this forward, working through complex stakeholder interests to reach this point.
FTF perspective
This is not just another policy update. It changes how financial data is accessed, shared, and used across the system.
The real test now is in execution. How quickly standards are defined, how well stakeholders collaborate, and how effectively risks are managed will determine the outcome.
Canada now has the foundation in place. What happens next will decide whether it simply catches up with global peers or sets a new benchmark for how financial ecosystems evolve.
Bottom line
Bill C-15 and the Consumer-Driven Banking Act mark the start of a new phase for financial services in Canada. Data will play a more central role, and institutions that adapt early and work together will be better positioned for what comes next.
