Fintechs Canada is asking the government to complete its payment modernization efforts by continuing to support the launch of Canada’s first real-time payment system, the RTR, as well as continuing to advance Canada’s consumer-driven banking framework by providing the FCAC with additional funding for educational purposes.
Budget 2024 included crucial initiatives to modernize Canada’s financial sector. Amendments to the Canadian Payments Act will make payment service providers eligible to access Canada’s national clearing and settlement systems, enabling them to better meet the needs of Canadians and reduce fees for consumers. The implementation of a consumer-driven banking framework will also help manage emerging risks by providing Canada with more secure data-sharing services.
Despite notable strides in modernizing its financial sector, Canada still lags behind other jurisdictions. Notably, following the launch of FedNow in the US in 2023, Canada is now the only G7 country that does not benefit from a real-time payment system.
Additionally, given the nuances of consumer-driven banking in Canada, only a fraction of Canadians understand the concept of open banking, and those who have heard of it, do not fully understand it. To avoid low adoption rates similar to those seen in Australia, the government should enhance public awareness and education efforts.
To read the full pre-budget submission, click here.
