Canada to advance Open Banking, a wake-up call for Washington

Steve Boms, Executive Director of FDATA, compares the recent efforts of Canada advancing its Open Banking framework to the US potential, and lack of initiative so far.

On 4 November 2025, Canada’s budget advanced a detailed framework implementing the Consumer-Driven Banking (CDB) Act, which received Royal Assent in June 2024. While Canada becomes the latest country around the world to enact Open Banking, the US is still mired in debate over whether Americans have the right to access and share their financial data with third parties of their choosing without punitive fees. 

The state of play is ironic. The US invented modern finance, and we are among the last to modernise it. The largest American financial institutions are more profitable than ever, making hundreds of billions of dollars a year not only on interest, but on a growing list of hidden fees and interchange charges. Consumers should not bear the cost of accessing their own financial data – fees charged to fintechs will inevitably trickle down, forcing consumers to pay simply to share their data with a provider that serves their financial needs. Protecting consumer data rights under Section 1033 is essential to the US reclaiming leadership in financial innovation and protecting American consumers.

The US has long led the world in digital finance, but is now becoming a cautionary tale of political paralysis and industry obstruction. In the European Union, the Second Payment Services Directive (PSD2) was adopted a decade ago, followed by the United Kingdom’s design and implementation of Open Banking. Now Canada has joined them, transforming its banking system into a durable, made-for-the-21st-century framework. While America’s biggest banks have stalled progress at home, the rest of the world is writing the rules that will define the playing field for US fintechs, crypto, financial institutions, and consumers alike.

Our peers moved from ideation to implementation years ago, yet the US is still debating fundamentals. Section 1033 is no longer a regulatory question; it’s a test of whether the US intends to lead in global finance or cede that leadership abroad.

The United States urgently needs what Canada is formalising now: a clear, enforceable right for consumers and small businesses to access and share their financial data safely, securely, and without fees. The solution is within reach: protecting Section 1033. 

Section 1033 isn’t radical; it’s foundational. Without it, Americans will remain locked into outdated systems that limit choice and competition. In today’s world, a data right is an economic right. Section 1033 is how we ensure the benefits of financial innovation extend to everyday Americans and Main Street businesses, not just the largest incumbents that already dominate the market.

We cannot afford to delay any longer. The US Open Banking system has already fractured, proof that inaction is not neutral. What we have today is not a free market – it’s an imbalanced one, dictated by a handful of large financial institutions that have long shaped the rules to their advantage. Every day of delay deepens their monopoly over consumer data. Americans are already paying the price through higher fees, fewer options, and less competition. Canada saw our mistakes and learned from them. Our closest trading partner has built a framework that will give Canadians control of their data and create a level playing field for innovators. Their leapfrogging of the US is proof that progress is possible when government asserts the rights of consumers and small businesses, not industry incumbents. The US can still lead by finishing what Dodd-Frank started, but the clock is ticking.

It’s hard to overstate how much is at stake. An estimated 80% of American consumers use a fintech tool, including apps for personal financial management and holistic financial advice, as well as small business accounting tools, Pay by Bank tools, and the ubiquitous peer-to-peer payment apps everyday Americans rely on. Because of the reach, breadth, and market penetration of these tools, Section 1033 is now more than a regulatory decision – it’s an economic strategy. This moment is about US competitiveness, consumer protection, and innovation in an increasingly competitive world. If 1033 is vacated, we’ll see more fintech investment move abroad and consumers lose significant choice in the financial marketplace. The entire US fintech ecosystem, including more than 10,000 companies and hundreds of millions of consumers, face regulatory uncertainty that will choke investment, stifle innovation, and limit consumer choice.

The time has come to stop stalling and start writing the future. Protecting Section 1033 will provide Americans with the benefits of innovation and the safeguards of smart regulation. By doing so, the US can reclaim its place as a financial innovator and build trust in our financial system by giving Americans real control over their data. 

The moment to act is now. Canada is moving forward with CDB. Europe has already done it. The US wrote the playbook on modern finance and financial innovation, but now we’re sitting on the sidelines watching others run it. Protecting Section 1033 is more than a policy decision. It’s a defining moment about whether America remains the epicenter of financial innovation. 

About Steve Boms

Steve Boms, Executive Director of FDATA, has two decades of experience working inside government, public and private companies, trade organisations, and the technology industry. He assists organisations as they engage with policymakers in Washington, across the country, and around the world. Steve has spent his career focused on complex financial services public policy issues, having worked in the United States Congress on the committee with jurisdiction over banking. He has led global advocacy efforts and public policy teams for equity options exchanges, large US-based financial institutions, and leading fintech firms. A recognised expert on the intersection of financial technology and public policy, Steve has testified before the United States Senate, the Senate of Canada, and the Organisation for Economic Cooperation and Development on financial services and technology. He is also a frequent panelist and media commentator on technology, financial services, and regulatory issues.