Canada Publishes Open Banking Draft Rules, Sets 60-Day Comment Period

Canada's Department of Finance published draft open banking regulations on Friday, detailing how FinTechs can access customer data from banks and other financial institutions. The 60-day public consultation period started immediately.

The proposed system would require banks to share account numbers, transaction history, product terms, and fee data when a customer requests it. The goal is to replace screen-scraping, where FinTechs log into bank accounts using stored credentials. The federal government has said it is considering banning that practice.

Abraham Tachjian, Canada's former open banking czar and now chief regulatory affairs officer at Brim Financial, told BetaKit he was "pleasantly surprised" by the regulations' scope. The rules apply to payment products and investment accounts. Tachjian noted they also cover lending accounts.

FinTechs already registered under the Retail Payments Activities Act (RPAA) can use a streamlined accreditation path. That group includes Koho and Venn, among others. Wealthsimple, another registered PSP, is also eligible. Industry association FDATA had pushed for a sponsored accreditation model where larger companies assume regulatory responsibility for smaller entrants. The draft did not include that.

The rules do not specify when companies can start participating. A government news release said some requirements would take effect within a year of the final regulations being published. Consultations close in August.