Transformation: Exploring the Dynamic Evolution of Open Banking Across North America
In the ever-evolving landscape of financial technology, Canada and the United States are making significant strides towards the implementation of Open Banking. Despite the political retrenchment that followed the 2024 election in the United States, Canada has emerged as a frontrunner in this transformative movement.
The Canadian government, through the Financial Consumer Agency of Canada (FCAC), is bolstering its budget and staff to drive the Open Banking initiative. This push is spearheaded by the Consumer-Driven Banking Act, which, after years of legislative limbo, is stirring once again. The Act aims to establish a framework focused on consumer control, safety, and economic growth, with clear regulatory goals announced in 2024 to protect and empower consumers.
In contrast, the United States open banking remains primarily market-led, with about 52% of banks offering data-sharing APIs in 2025. While this represents a significant adoption rate, it lacks the comprehensive federal regulatory framework comparable to Canada's forthcoming rules. The U.S. approach relies on voluntary initiatives and industry standards like the Financial Data Exchange, supported by some regulation such as Section 1033 aiming to formalize consumer rights gradually.
Canada's edge lies in its structured regulatory approach. In late 2023, the Consumer Financial Protection Bureau (CFPB) in the United States implemented Section 1033 of the Dodd-Frank Act, which enshrines consumers' rights to access and share their financial data. However, the progress of Open Banking in the United States has been affected by unspecified issues, causing the engine to sputter. In comparison, Canada's imminent regulatory framework and significant user adoption place it ahead in implementation leadership in North America.
As of 2025, Canada currently leads in the implementation of Open Banking in North America, primarily due to its government-backed Consumer-Driven Banking Framework that is formalizing regulations and growing voluntary adoption. This has resulted in over 8 million users collaborating between banks and fintechs.
The question of which country would lead in Open Banking has been a topic of discussion for years. However, it is clear that the genie of Open Banking is out of the bottle and it is coming, regardless of regulatory approval. The North American Open Banking journey is a long, complex process characterized by promises, pauses, regulation, and resistance.
In this journey, Canada seems poised to take the lead. Mark Carney, the former Governor of the Bank of England, who became the Prime Minister of Canada, has called for investment in national data infrastructure, endorsed consumer-directed finance, and signaled that the time for delay was over. This strong political backing, coupled with a structured regulatory approach, positions Canada as a trailblazer in Open Banking in North America.
Sources: 1. Canada's Open Banking Progress 2. Canada's Consumer-Driven Banking Framework 3. North America's Position in Open Banking
- In the realm of Open Banking, Canada is moving ahead with Canada's Consumer-Driven Banking Framework, which is formalizing regulations and boosting voluntary adoption.
- With over 8 million users collaborating between banks and fintechs, Canada currently leads in the implementation of Open Banking in North America.
- The Canadian government has indicated a structured approach towards Open Banking through the Financial Consumer Agency of Canada, allocating more budget and staff to drive the initiative.
- The consumer control, safety, and economic growth focused framework, outlined in the Consumer-Driven Banking Act, aims to protect and empower consumers in the Canadian open banking landscape.
- In the United States, open banking remains market-led, with around 52% of banks offering data-sharing APIs, but lacking a comprehensive federal regulatory framework like Canada's.
- The former Governor of the Bank of England, Mark Carney, as the Prime Minister of Canada, has advocated for investment in national data infrastructure, endorsed consumer-directed finance, and urged for swift action in Open Banking.
- Despite the political retrenchment and regulatory challenges in the United States, technology continues to play a significant role in shaping Open Banking in the banking-and-insurance, finance, and business industries across North America.
