The Financial Data and Technology Association of North America (FDATA) has presented a compelling appeal to Canada’s Department of Finance, emphasizing the need to accelerate the implementation of Open Finance in the upcoming Budget 2025.
According to Open Banking Expo, in a robust submission responding to the Department’s pre-budget consultation, FDATA has outlined strategic recommendations to refine the initial Open Banking regime and promote a competitive and innovative financial environment.
Highlighting the significance of Open Banking, FDATA advocates for a swift and well-regulated rollout, ensuring that Canadian consumers and SMEs gain comprehensive access to its benefits. The association stresses the importance of including small business accounts in the initial phase of Open Banking, seeking clarifying language to remove any ambiguity and enhance stakeholder confidence.
Moreover, FDATA underscores the necessity for adequate funding for the Financial Consumer Agency of Canada (FCAC). This funding is crucial to recruit civil servants with the necessary expertise in FinTech, consumer-permissioned data, and Open Banking, as well as to provide essential consumer and small business education.
The submission also suggests that the FCAC’s enforcement of Open Banking compliance be tiered to foster innovation without compromising the system’s integrity. Looking beyond Open Banking, FDATA sets its sights on Open Finance, describing it as the next critical step in advancing market innovation and competition to benefit all Canadians. The association urges the government to initiate the Open Finance framework expeditiously, with a well-defined timeline for incorporating additional financial accounts.
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