Canada’s digital banking landscape: challenges and what comes next

Canada’s digital banking transformation

If you caught my recent talk at the ebankIT Summit, you’ll know that Canada is facing a unique mix of regulatory uncertainty, market disruption, and rapid technology evolution.

While the world shares many of the same macroeconomic challenges like AI acceleration, geopolitical shifts, inflation, I want to focus on what’s happening here at home in Canada sets us apart in some fascinating ways.

Let me walk you through four of the biggest forces reshaping digital banking in Canada right now.

1. Progress interrupted for Open Banking

Canada has been late to the open banking game. While regions like the UK and Australia are well into implementation, we only officially got started in 2023 with a government economic statement committing to the journey.

Then, in June 2024, we hit a milestone: the Consumer-Driven Banking Act passed, and the industry buzzed with optimism. A framework followed in the fall, and by early 2026, we were expecting Canada’s open banking regime to finally come to life.

And then—surprise!—we had a federal election.

With a new Prime Minister and a government focused heavily on economic stability, open banking is no longer a visible priority. Timelines are now uncertain. We’re hoping it stays on track, but realistically, it could be delayed—or fast-tracked—with little warning.

For banks, credit unions, and fintechs alike, this means staying agile. The groundwork still needs to happen, even if the official start date is a moving target.

2. Real-Time Rail (RTR): long awaited, nearly ready

Our payments system hasn’t kept pace with the needs of modern consumers or businesses. For example, in Canada today, if I need to transfer more than $10,000 in a week, I can’t. Not unless I wait until the next week. That’s a real limitation and one we’ve lived with for far too long.

Enter Real-Time Rail (RTR), the infrastructure that will finally modernize how we move money in Canada.

We’re about 60% through the build phase, with completion expected in Q3 2025, followed by a testing period.

That’s promising progress, but there’s nervousness too. What if RTR and open banking go live around the same time? Launching two massive, transformative initiatives together could create strain across the entire financial ecosystem.

Still, there’s no denying this is a long-overdue and essential upgrade. The key will be thoughtful rollout and cross-industry collaboration.

3. Mergers and acquisitions

Here’s something that caught even me off guard: every single one of our six direct Canadian customers is currently going through a merger or acquisition. All of them.

This trend brings both complexity and opportunity. From a technology standpoint, it gets particularly interesting when, for example, two institutions running different versions of our own platform merge. We’ve done plenty of migrations from other platforms—but merging two ebankIT instances? That was a first.

These transitions can stall innovation efforts in the short term, but they also pave the way for bigger, better digital strategies down the road.

And for us, it's an incredible opportunity to support banks through these integrations and help shape what their unified platforms look like.

4. Market disruption: One less competitor

Earlier this year, a digital banking competitor exited the Canadian market, deciding it was no longer viable to serve financial institutions here. The result? Over 170 financial institutions suddenly needed to replatform and fast.

Imagine that, at a time when institutions are already navigating economic pressure, preparing for RTR, and bracing for open banking, they’re also being forced to find and implement a new digital banking partner.

This has sent many of them knocking on our door. It's a moment of both great responsibility and great opportunity.

We’re working hard to support as many of these institutions as possible without compromising on service quality or long-term partnership

So what now?

Between open banking uncertainty, RTR readiness, nonstop M&A, and market shake-ups, Canada’s financial sector is in the thick of it. And that’s without even getting into the broader impacts of AI and global economic conditions.

Yes, it’s a challenging time but it’s also full of potential.

If there’s one thing I know about Canadians (and I say this with full national bias), it’s that we’re resilient, collaborative, and capable of turning complexity into innovation.

So whether you’re a partner, a fintech, or a financial institution navigating these shifts, know this: we’re in it with you.

And we’re excited about what’s coming next—even if we say “sorry” while we help you get there.