How Fintechs in Canada Can Capitalize on Concerns About Connected Finance

Canada continues to inch toward open banking, albeit slower than most would have hoped.

Analyzing this advancement is EY Canada, whose fourth annual Open Banking Survey uncovers insights into the field.

Research for the 2025 edition of the report, conducted in partnership with Mastercard and TrueChoice Solutions, reveals that security and privacy are top-of-mind for many Canadians as the nation advances open banking protocols.

With regards to open banking—sometimes referred to as “connected finance” or “consumer-driven banking”—more than two-thirds of Canadians cite protection from identity theft as a primary concern.

“Consumers want to know security measures are in place to protect their privacy,” the report reads. “That includes ensuring data is only used for its intended purpose and protecting it through adherence to technical standards.”

And, “in addition to security measures, consumers are also concerned about data consent and control,” demanding “the ability to revoke access to their data and prevent it from being repurposed without their consent.”

The report suggests that service providers who implement effective security and data control measures “can build the kind of trust that moves consumers beyond these barriers.”

Another key finding is that product and service simplification and personalization are important trends in the era of open banking and intelligent technologies.

“Personal banking consumers value product enhancements that simplify their finances—like optimized bill payments or the ability to move money within Canada more quickly and easily—above all other potential value drivers,” the report found.

Improved customer service and more personalized communication are also seen as highly attractive by Canadians.

In order for the market to truly mature, however, there requires “important enablers of open banking” such as regulation around common standards and rules, advanced technology, and participation across a vast and complex ecosystem, according to the report.

We could still be waiting a while yet for some of those factors to materialize.