Introduction
Small businesses are the backbone of Canada’s economy. They account for nearly 98 percent of all businesses and employ millions of Canadians. Yet when it comes to financial innovation, they are often left behind.
As Canada moves toward implementing open banking, we face a critical choice: will small businesses be included from the start, or will they be forced to wait while larger players reap the benefits? For me, as an accountant and co-founder of a firm that serves hundreds of entrepreneurs, the answer is clear: small businesses must be at the center of Canada’s open banking rollout.
What is Open Banking?
At its core, open banking allows individuals and businesses to securely share their financial data with trusted third parties through standardized digital connections. Instead of downloading and emailing bank statements, information can flow instantly and securely between financial institutions, accountants, and fintech platforms.
Countries like the United Kingdom and Australia have already adopted open banking. Their small businesses now enjoy faster access to financing, reduced administrative burdens, and more competition among financial service providers. In the UK, for example, businesses reported a 22 percent reduction in time spent reconciling monthly transactions after open banking launched.
Why Small Businesses Can’t Be Left Behind
Today, Canadian entrepreneurs spend countless hours on manual bookkeeping tasks. Many struggle with cash flow, high payment processing fees, and limited access to credit. Open banking has the potential to change all of that.
Imagine:
- Instant loan approvals because lenders can see verified transaction data in real time.
- Lower payment costs thanks to direct account-to-account transfers.
- Seamless bookkeeping as accounting platforms reconcile bank data instantly.
These are not distant possibilities, they are the daily realities for small businesses in other open banking jurisdictions. A recent survey found that 74 percent of Canadian SMEs would be willing to share more financial data if it meant getting more personalized, affordable services.
Excluding business accounts from the first phase of Canada’s open banking rollout would mean years of unnecessary delays and lost opportunities. It would widen the gap between small firms and larger enterprises, who already enjoy access to more advanced financial tools.
Where Canada Stands Now
Consultations are underway, and Budget 2025 will shape the initial framework. But we don’t have a official timeline. And so far, most of the conversation has centered around consumer accounts, not business ones.
That’s why we launched OpenSME, a volunteer-driven campaign to ensure that small businesses are included from day one with clear timelines on open banking roll out. Our message to policymakers is simple: if open banking is about fairness, choice, and competition, then it must also be about the entrepreneurs who drive Canada’s economy.
How Small Businesses Can Prepare
While government timelines are still unfolding, small business owners can start preparing today:
- Talk to your accountant or bookkeeper. Ask how open banking could streamline your workflows and cut costs.
- Adopt digital tools. Cloud accounting platforms, modern payment processors, and fintech apps will be the first to integrate with open banking. There’s no reason to stay with archaic platforms.
- Stay informed. Follow updates on government consultations, and support advocacy initiatives pushing for small business inclusion.
- Think strategically. Open banking isn’t just about saving time; it’s about opening the door to more competitive loans, personalized financial products, and better decision-making.
A Personal Perspective
I’ve built my career working alongside small business owners. I’ve seen firsthand how much time is wasted on financial admin and how many promising companies struggle to access fair financing.
Earlier this year, I was asked to join a high-profile political campaign in a senior finance role. I turned it down. My heart is with Canada’s entrepreneurs, and my focus is on making sure they get the tools they need to thrive.
Open banking is one of those tools. If we get this right, we can unleash a wave of innovation that helps level the playing field for small business owners across the country.
Conclusion
Canada’s entrepreneurs don’t need another promise that someday they’ll benefit from financial innovation. They need to be included now.
Open banking represents a once-in-a-generation opportunity to give small businesses faster access to capital, lower costs, and less red tape. But only if policymakers ensure that business accounts are part of the rollout from the very beginning.
Small businesses are the backbone of our economy. Let’s make sure they’re also the backbone of Canada’s open banking future.
