Consumer-driven banking in Canada
Learn about consumer-driven banking, also called open banking. It lets you share your financial information with approved service providers through secure connections.
Understanding consumer-driven banking
Consumer-driven banking is also called open banking. It lets you share your financial information with approved service providers, like financial technology companies (fintechs).
Fintechs provide online financial products or services through financial applications. They access your information through secure systems called Application Programming Interfaces (APIs).
APIs are designed to replace screen scraping by allowing your financial data to be shared without sharing your bank login details.
Tip
Consumer-driven banking may let you access your accounts, products and services all in one place.
It may also help you use new tools to manage your money.
How consumer-driven banking works
Suppose you have a bank account and want to use an online financial product or service from another provider.
Using consumer-driven banking:
- You choose to share your information with a service provider, such as a budgeting app
- Your bank shares only the information you agreed to share, like your transaction history or account balances
- The service provider uses that information to offer budgeting insights, loan offers or credit-building tools
You stay in control and decide:
- what information you share
- who may see it
- how long it may be shared
Tip
You can stop sharing your financial information at any time.
Figure 1: How consumer-driven banking works
Text version: How consumer-driven banking works
- You find a fintech app that can help you manage your finances
- The app prompts you to link your bank accounts to access your financial data
- You authorize your bank to share your financial data with the app via open banking
- Your financial data is shared using a secured online channel
The app analyzes your data and recommends personalized financial products and services
Understanding screen scraping
Screen scraping happens when you give your online banking username and password to third parties. They use them to get into your account. They then collect your data.
These third parties offer financial products or services through apps.
These apps can help with:
- mobile payments
- loans
- budgeting tools
- digital wallets
When screen scraping puts you at risk
Be cautious.
Screen scraping puts you at risk of fraud and data breaches because:
- you give your online banking username and password to a third party
- you may lose control of your information and who it’s shared with
- if you don’t protect your information, your bank may hold you responsible for fraud or a data breach
Exploring how consumer-driven banking can help you
Consumer-driven banking increases your choices and may improve your financial situation. Service providers, such as fintech companies, help you manage your money online and on mobile apps.
Consumer-driven banking offers benefits, like:
- secure access to online financial products and services
- access to your accounts in one place
- easier access to tools and products that fit your needs
- a way for lenders to review your credit history and bill payments in one place
Example
Suppose you need help managing your spending and saving.
You find a financial app and choose to share your financial information securely with it.
The app reviews your income and spending and suggests ways to save, like setting up automatic deposits.
You may feel more in control of your money and can start building savings.
Figure 2: Benefits of consumer-driven banking
Text version: Benefits of consumer-driven banking
Benefits of consumer-driven banking:
- greater control
- enhanced protection
- more choices
- all in one place
Introducing the Consumer-Driven Banking Framework in Canada
The Government of Canada is putting in place a framework to help protect your privacy and data.
The framework will oversee participating banks and service providers and set rules for how they operate. Participants in the framework will need to meet strict rules to protect you.
These include requirements for security, privacy, consent, how your data is used, and how complaints are handled.
Tip
You may already be sharing your financial information with services outside your bank.
Canada’s Consumer-Driven Banking Framework is meant to protect your rights when you use those services.
When the framework will come into force
Consumer-Driven Banking will soon be available in Canada. It will support new options and more competition in the financial sector. You’ll start finding new options to manage your finances.
Learn more about Canada’s Consumer-Driven Banking Framework – Budget 2025.