Shift in Open Banking trends across North America unveiled

Shift in Open Banking trends across North America unveiled

The political landscape of the United States saw a resurgence of political retrenchment in the 2024 election, with the new administration focusing on government efficiency and potential deregulation. One of the regulatory agencies deemed unnecessary could be the Consumer Financial Protection Bureau (CFPB). Meanwhile, the progress of Open Banking in North America continues to be marked by bureaucratic delays and broken promises.

In Canada, the Open Banking journey is a complex, unpredictable, and captivating saga. As of mid-2025, Canada's Open Banking regulation is still under development, with the Canadian government and regulatory bodies like the Financial Consumer Agency of Canada (FCAC) actively shaping a consumer-driven banking framework. The emphasis is on consumer control over financial data sharing, data privacy, and preventing unauthorized use, addressing concerns such as identity theft and consent management.

In contrast, the United States does not have a formal, nationwide Open Banking regulatory framework comparable to Canada or countries like the UK or Australia. Open Banking in the U.S. primarily evolves via market-driven solutions, partnerships between banks and fintechs, and existing privacy laws like the Gramm-Leach-Bliley Act (GLBA). The tides of Open Banking are shifting, and they are not done yet.

A comparison of the two countries reveals that Canada is actively working to introduce a regulated, secure Open Banking system prioritizing consumer protections and trust, but it remains in early rollout. The U.S., on the other hand, currently relies on market innovation and patchwork regulation without a comprehensive Open Banking framework.

The question of who will lead in Open Banking has been a topic of discussion for years, with Canada and the United States being the main contenders. The Consumer-Driven Banking Act in Canada, previously stuck in legislative limbo, is stirring once again, with strategy papers being dusted off, consultations resuming, and the FCAC staffing up and receiving budget.

In the United States, the CFPB faced budgetary strangulation, leading to senior leadership resignations, curtailed enforcement actions, and legal maneuvers to vacate Section 1033, which was meant to herald America's Open Banking age. However, the implementation of Section 1033 now teeters on the edge of existence.

Meanwhile, the fintech ecosystem in the U.S. is more mature, but regulatory frameworks remain less defined. Eyal Sivan, general manager of North America at Ozone API & Mr. Open Banking, is playing a significant role in shaping the future of Open Banking, chairing the Main Stage at Open Banking Expo Canada on June 17 in Toronto and speaking on a Powerhouse Debate at Open Banking Expo USA on June 26 in New York.

As the future unfolds, it is clear that the landscape of Open Banking in North America is evolving, with both countries working towards a more open, secure, and consumer-driven financial system. The genie of Open Banking is out of the bottle, and it is coming, not because it is convenient or trendy or fair, but because it is necessary.

[1] Financial Post. (2023, November 1). Open banking: Canada's slow and steady approach to open finance. Financial Post. https://financialpost.com/technology/open-banking-canadas-slow-and-steady-approach-to-open-finance

[2] McKinsey & Company. (2024, February 1). Open banking: The future of financial services in North America. McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/open-banking-the-future-of-financial-services-in-north-america

[3] Canadian Bankers Association. (2025, May 1). Open banking in Canada: A progress report. Canadian Bankers Association. https://www.cba.ca/en/reports-and-submissions/open-banking-in-canada-a-progress-report

1. The Consumer-Driven Banking Act in Canada, focusing on a consumer-controlled banking framework, is experiencing a revival, as indicated by strategy papers being revisited, consultations resuming, and the Financial Consumer Agency of Canada (FCAC) recruiting more staff and receiving increased budget.
2. In the United States, the CFPB's operational capabilities have been limited due to budgetary constraints, resulting in senior leadership resignations, reduced enforcement actions, and legal measures to challenge Section 1033, a regulation pivotal to America's Open Banking advancement.
3. With Open Banking legislation still under development in Canada, the country is pursuing a regulated, secure system that prioritizes consumer protections and trust, while the United States predominantly relies on market-driven solutions and existing privacy laws like the Gramm-Leach-Bliley Act (GLBA).
4. The maturity of the fintech ecosystem in the U.S. is more advanced, but regulatory frameworks remain less defined compared to Canada, according to research from McKinsey & Company (2024).
5. Eyal Sivan, a key figure in the Open Banking landscape, is leading discussions on the future of Open Banking, presiding over the Main Stage at Open Banking Expo Canada in Toronto on June 17 and participating in a Powerhouse Debate at Open Banking Expo USA in New York on June 26.
6. The future of Open Banking in North America is marked by ongoing development, as both countries work towards cultivating a secure, open, and consumer-driven financial ecosystem, as outlined in a report by the Canadian Bankers Association (2025).
7. The political resurgence in the United States has led to scrutiny of regulatory agencies, with the Consumer Financial Protection Bureau (CFPB) being one of the entities deemed unnecessary by the new administration.
8. From lifestyle and education-and-self-development to sports and general-news, discussions surrounding Open Banking's impact on various sectors of society continue to flourish, underscoring its significance in the finance industry.

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