The Financial Data and Technology Association of North America (FDATA) has called on Canada's Department of Finance to expedite the introduction of Open Finance. In its submission to the 2025 pre-budget consultation, FDATA emphasized the need for adjustments in the initial design of this financial framework to foster competition and innovation. The association represents numerous fintech companies that provide a wide range of services, from financial management tools to digital banking and affordable credit options, serving millions of consumers and small businesses across Canada. FDATA urged the government to prioritize the rapid and well-governed implementation of Open Banking, ensuring full access to its benefits for both individuals and small business owners. Additionally, it sought clarifications regarding the inclusion of all small business accounts in the first phase of the Open Banking framework and advocated for sufficient funding for the Financial Consumer Agency of Canada (FCAC) to oversee the system effectively.

In anticipation of Budget 2025, FDATA outlined several key recommendations aimed at enhancing the Open Finance landscape in Canada. One of the primary suggestions was the swift and structured implementation of Open Banking. This would ensure that consumers and small business owners can fully leverage the advantages offered by this innovative financial system. FDATA stressed the importance of providing clear guidelines that confirm the inclusion of all small business accounts in the initial phase of the Open Banking rollout. Such clarity is essential to build confidence among stakeholders and promote widespread adoption. Moreover, FDATA highlighted the necessity of allocating adequate resources to the FCAC, enabling it to attract skilled professionals with expertise in fintech and consumer-permissioned data. This would facilitate better consumer education and support the enforcement of compliance in a manner that encourages innovation within the financial sector.

Beyond Open Banking, FDATA also recommended that Budget 2025 outline a comprehensive approach to Open Finance. According to FDATA, Open Finance represents the next logical step following the successful introduction of Open Banking. It envisions a broader framework that will unlock greater market innovation and competition, ultimately benefiting Canadian consumers and businesses. The association urged the government to begin articulating its vision for Open Finance as soon as possible and to establish a timeline for incorporating additional types of financial accounts into the existing framework. By formalizing this iterative process, Canada can build on the progress made in 2024 and continue to advance its financial innovation agenda.

The advocacy from FDATA underscores the significance of aligning the upcoming budget with the expectations of both the government and the market. The delivery of the initial Open Banking framework in Budget 2024 marked a crucial milestone in a lengthy consultative journey. Moving forward, Budget 2025 should not only ensure the timely and effective implementation of Open Banking but also lay the foundation for the future expansion of Open Finance. This strategic move will be pivotal in fostering a more competitive and innovative financial ecosystem in Canada, paving the way for enhanced services and opportunities for all stakeholders involved.