Canada’s banking industry is entering a new era. Emerging technologies, evolving regulations, and shifting consumer demands are changing the financial landscape for businesses of all sizes. Whether you’re running a local small business or managing a larger commercial operation, understanding these changes and preparing for them can help you turn uncertainty into opportunity.
Open banking refers to the secure sharing of financial data between banks and authorized third parties through standardized APIs. Although the rollout in Canada has faced delays, it is expected to enable more competitive financial products and services for businesses, including integrated accounting tools, better cash flow management, and easier access to credit (Financial Consumer Agency of Canada, 2024).
AI is no longer futuristic; Canadian banks are actively adopting it. From real-time fraud detection to automated loan approvals and personalized banking insights, AI is making financial processes faster and smarter (GFT, 2025). For small and commercial businesses, this means quicker service, more tailored banking options, and the need to manage your data securely.
Canadian regulators are actively updating rules on open banking, data privacy, and anti-money laundering. Notably, in June 2024, Canada introduced a Digital Services Tax (DST) on certain online revenues. However, as of June 29, 2025, the DST was rescinded to facilitate broader trade negotiations with the United States (Government of Canada, 2025a).
Additionally, the federal government continues to streamline interprovincial trade through initiatives such as the Federal Action Plan to Strengthen Internal Trade and the Canadian Survey on Interprovincial Trade (Government of Canada, 2024b; Statistics Canada, 2025).
Environmental, Social, and Governance (ESG) factors are increasingly important for Canadian banks. Many lenders now consider a business’s sustainability practices when making lending or investment decisions (PwC Canada, 2024). Businesses that proactively align with ESG goals may unlock preferential rates and new financing opportunities.
Greater Choice and Customization: Open banking promises more options for financial management, but also introduces new third-party vendors you’ll need to evaluate as an owner.
Faster, Digital-First Banking: Expect more digital banking, with AI-driven decision-making and fewer manual processes, but also a need to keep your business data secure.
New Compliance Expectations: Changing regulations may increase the administrative burden for business owners. Staying informed will be key.
Sustainability Advantage: Business owners with strong ESG practices may benefit from improved access to loans and a stronger reputation with customers and investors.
Upgrade Your Technology:
Modernize your accounting and cash management systems to integrate seamlessly with open banking and digital financial services.
Strengthen Data Security:
Review and enhance your internal controls to ensure that business and customer data are protected, especially when sharing data with third-party fintech providers.
Monitor Regulatory Developments:
Assign someone to track new rules from the Office of the Superintendent of Financial Institutions, Department of Finance Canada, and your bank’s updates.
Embrace Sustainability:
Document your ESG initiatives and be ready to provide proof to lenders and investors. Consider adopting environmental and social responsibility policies to promote sustainability.
Educate Your Team:
Train staff on the latest banking changes and best practices for digital security and compliance.
The future of banking in Canada is digital, data-driven, and sustainability-focused. By understanding these trends and taking action now, commercial and small business owners can not only minimize risk but also unlock new growth opportunities. Stay informed, stay agile, and partner with advisors who understand the changing landscape.
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Government of Canada. (2025a). Canada Rescinds Digital Services Tax to Advance Broader Trade Negotiations with the United States. https://www.canada.ca/en/department-finance/news/2025/06/canada-rescinds-digital-services-tax-to-advance-broader-trade-negotiations-with-the-united-states.html
Government of Canada. (2024b). The Government of Canada is Making it Easier to Trade Within Canada. https://www.canada.ca/en/intergovernmental-affairs/news/2024/07/the-government-of-canada-is-making-it-easier-to-trade-within-canada.html
Financial Consumer Agency of Canada. (2024). Open Banking: What It Means for Consumers. https://www.canada.ca/en/financial-consumer-agency.html
GFT. (2025). Canadian Banking Disruption Index 2025. https://www.gft.com/ca/en/technology/thought-leadership/banking-disruption-index-2025
PwC Canada. (2024). Sustainability and ESG services. https://www.pwc.com/ca/en/services/sustainability.html