The future of banking is open (but Canada is stuck in the past)

Remember when switching phone carriers in Canada meant losing your number? That changed when regulations forced telecoms to let you keep it—a shake-up that drove competition up and prices down.

Now, imagine that same shift happening with your banking. Right now, switching banks can feel like starting from scratch, with your financial data locked away.

Open banking changes that. It lets you securely share specific data—your account balance, spending habits, or loan applications—with trusted apps or services. No more being locked into a single bank’s ecosystem. Instead, you get choice, flexibility, and access to better tools.

Simply put: open banking puts you in charge of your financial data. So, why is that such a controversial topic in Canada? Let’s break it down.

Open banking puts you in control, not the banks

Today, your bank owns your financial data. That means, you’re locked into their ecosystem with little flexibility. 

Open banking—what the government calls, “consumer-driven banking,”—puts you in control of your financial data. Instead of being locked into one system, you can securely share your financial data with other banks, lenders, or apps, if you choose to. 

So, you can easily switch banks, find better loan rates, or use smarter tools to manage your money. Want a budgeting app to peek at your Tim’s runs? Or maybe you’re after a better rate for a line of credit? Open banking makes that possible. 

Is it safe? Yes.

Behind the scenes, open banking runs on secure APIs (think of them as digital handshakes) that allow banks and financial providers to share only the data you approve. 

Right now, financial apps rely on screen scraping, which requires customers to hand over their banking passwords in order to use their products. 

Open banking replaces this with highly secure, government-regulated, encrypted APIs.

What you get in exchange:

• Your say: Nothing moves without your approval first.
• Tight security: APIs keep it safer than today’s clunky, and much more risky screen-scraping methods.
• Ruled by rules: Intense government oversight keeps it legit.

That means that your information is both portable and protected.

Open banking changes the game

Some elected officials call open banking “huge”—and they’re right. Open banking is a game-changer. It puts the power in Canadian’s hands. It also unlocks competition that could reshape Canada’s financial landscape.

Having open banking in Canada means more choice and more control, with:

• Smarter tools: Access to innovative apps to level up your money game.
• More savings: More competition means lower fees and better financial products.
• Total control: You decide what data is shared, with who, and when.

It’s a secure, structured setup, not a wild, unregulated free-for-all. And it works. 

So, what’s the hold up? Why is Canada behind?

The $7B cost of staying stuck

Currently, Canada is the only G7 country without open banking, leaving consumers and businesses at a serious disadvantage. Compared to countries like the UK and Australia, who were early adopters of open banking, we pay about $7 billion a year in excess fees.

$7 billion dollars.

Why? Because a handful of banks dominate the Canadian market. They set fees, dictate loan rates, and restrict financial competition. 

Canadians deserve a better system. And in June 2024, we almost got there with Bill C-69.

Keyword: almost.

How it started vs. how it’s going 🫠

Bill C-69 officially made open banking law in June 2024, but Parliament’s prorogation in January 2025, pretty much stopped it dead in its tracks—a delay that can stretch for months. 

With legislation at a standstill, Canadians are stuck paying more and getting less. 

Now, fintechs like Shakepay are twiddling thumbs, likely waiting past early 2026 for a full rollout. It’s a momentum gut-punch, leaving fintechs in limbo and political risks lurking. 

The stakes are even higher for Bitcoiners 

Today, banks frequently block transactions involving cryptocurrency platforms, adding friction for Canadians to buy, sell, or use digital assets. 

Open banking would allow banks and crypto platforms to integrate seamlessly, giving Canadians more control over their money. ​

That's why Shakepay has been tirelessly advocating for crypto to be included in Canada's open banking framework—because without it, your financial picture remains incomplete.

Competition’s slipping, and we’re paying the price

According to a recent study, almost half of Canadians (46%) are open to banking alternatives to manage their money. That same study also concluded that 60% of Canadians say we need more competition in banking to reduce fees and increase services.

Clearly, many Canadians are looking for better options. But the current system makes it difficult.

Critics argue that Canada’s banking stability during the 2008 financial crisis is reason enough to hold onto traditional systems (fair point!), but that’s no excuse to shield banks from competition. 

In fact, that lack of competition is costing Canadians.

The Competition Bureau released a report last spring outlining the hard truth that most of us Canadians already intuitively know: Since 2000, the largest firms in the largest industries have increased in concentration. That means dominant firms face less pressure to compete, and as a result, profits and markups climb—with Canadians footing the bill. 

Shakepay’s take

Imagine being able to effortlessly use your bitcoin alongside all your banking services—your data under your control, opening doors to better services. We like the sound of that.

We’re all about financial freedom—making money simple, secure, and innovative. Open banking helps do this, but banks won’t open up voluntarily—regulations must force their hand. 

It’s time for Canadians to demand financial freedom. Open banking isn’t just an upgrade—it’s a necessity. The longer we wait, the more we lose.

Push for open banking now. Contact your MP. Demand competition. Your wallet depends on it.