Canadians are unlikely to be able to use open banking tools until the end of 2027 at the earliest, even though Ottawa has already published draft rules for the new system, according to a Canadian Press report on Oct. 4, 2026.
Open banking, which the federal government calls consumer-driven banking, would let people share their financial data securely with apps and lenders of their choice, without handing over their bank passwords. Steve Boms of the Financial Data and Technology Association told the Canadian Press that the earliest consumers could get access is toward the end of 2027.
The plan rests on the Consumer-Driven Banking Act, which the Bank of Canada would oversee, according to a legal summary from law firm Bennett Jones. The Department of Finance released proposed regulations on June 27, 2026, and a 60-day consultation period closed on Aug. 26. The rules are not yet in force.
“In the most simple sense, open banking is the ability to securely share your financial data from multiple institutions so you can build a full picture of your own individual balance sheet,” Mark Schofield of Boston Consulting Group said. In practice, one app could show your chequing, credit card, investments and loans together, or a lender could check real transaction history instead of relying only on a credit score.
Why it matters now: the Canadian Press reports about nine million Canadians already share data through screen scraping, where an app logs in with your banking credentials. Open banking would replace that with a regulated, permission-based method. The Big Six banks hold more than 90 per cent of banking assets. Implementation is estimated at $457.7 million over 10 years, with $13.2 billion in projected benefits, according to figures cited by the Canadian Press.
The draft rules, as summarized by Bennett Jones, would cover identity and account information, current and historical balances, completed, pending and pre-authorized transactions, and product terms across deposit, payment, investment and lending accounts. Consent would generally be valid for up to 12 months, interfaces would need 99.5 per cent monthly uptime, and records would be kept for at least 24 months. The proposed accreditation application fee is $2,500, with four accreditation routes, including a streamlined path for firms already registered under the Retail Payment Activities Act. Proposed penalties reach $1 million for individuals and $10 million for participating entities or third-party providers.
Will it shake up the banks? John Aiken of Jefferies said: “I don’t view this as a looming tidal wave. It’s something that could slowly erode market share, but it’s not going to be immediate.” Henry Kim of York University said: “Down the road when the dust settles and the ecosystem figures out how all these technologies work, I believe there will be an opportunity for consumers to actually have options and have choice.”
What to watch: the draft rules are not final, so fees, consent terms and liability could change. The 2027 timeline comes from industry estimates. Readers who use apps linked to their bank accounts should check how those apps store and use their data. This story is developing, and we will update it when final regulations are released.
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Via Canadian Press (Castanet.net): Open banking swings both ways for big banks on risks and opportunities, experts. Regulatory details from Bennett Jones.
