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Why open banking matters for entrepreneurs
Running a small business already comes with enough hurdles. You’re chasing clients for payments, juggling payroll, and spending late nights sorting out cash flow. The last thing you need is outdated banking slowing you down.
Canada is behind other countries when it comes to open banking, and small businesses are paying the price. Entrepreneurs here deal with delays, high fees, and limited access to credit. Business owners in the UK and Australia are already benefiting from real-time data and same-day lending.
The good news is that change is possible, and small businesses have the most to gain.
What is open banking in simple terms?
Think of open banking as secure data sharing between your bank and trusted apps. Instead of downloading PDFs or manually entering transactions, you can safely connect your bank account to financial tools that help you:
- Automate bookkeeping and payroll.
- Speed up payments and reconciliations.
- Share real-time data with lenders and accountants.
Most importantly, you control your data and not the banks.
Why small businesses need it most
Open banking is more than a convenience. For entrepreneurs, it can be a real advantage:
- Save time: In the UK, small businesses save an average of 150 hours per year (NatWest Group).
- Access credit: Over 25% of previously declined businesses could get approved if lenders had access to real transaction history (FinTech Futures).
- Better services: 74% of Canadian SMEs say they would share data in exchange for more personalized and efficient banking solutions (EY).
Here is the reality check: only 13% of Canadian SMEs currently use fintech tools, compared with 32% in the UK (Business Council of Canada). Without open banking, Canadian business owners are falling behind.
Lessons from the UK and Australia
Other countries show what is possible:
- UK adoption: 17% of small businesses already use open banking, compared to just 11% of consumers (Open Banking UK).
- Faster lending: In Australia, small businesses can now get same-day loan decisions (ACCC Report).
- Lower fees: In the UK, increased competition helped push bank fees down. Meanwhile, Canada’s banks earn an estimated $8.5 billion extra profit annually (Senate of Canada).
For Canadian entrepreneurs, the message is clear. Open banking is not just a buzzword. It is a proven framework that saves time, improves access to credit, and puts money back in business owners’ pockets.
The people pushing for change in Canada
So who is fighting to bring open banking here?
One of the loudest advocates is Eric Saumure, CPA and co-founder of Zenbooks, who launched OpenSME to give small businesses and accountants a voice in shaping Canada’s framework.
He is joined by other leaders in the accounting and fintech community:
“OpenSME gives accountants a real voice in shaping open banking for small businesses. This is our chance to move from chasing paperwork to delivering real strategic value.”
— Ryan Lazanis, CPA, CEO, Future Firm
“Outdated banking slows small businesses to a crawl. Payments get stuck. Loan approvals die because data is not shared. Open banking fixes this. And our profession should be leading the charge.”
— Blake Oliver, CPA, Earmark Founder & The Accounting Podcast Co-Host
“At Xero, we believe a successful open banking framework must be designed with the voices of small businesses at its core. Open banking empowers accountants to shift from record-keepers to proactive advisors.”
— Mike Cascone, VP of Government Relations, Xero
The takeaway is simple. Canada’s entrepreneurs are not alone. There is a growing movement of accountants, fintechs, and business leaders pushing for progress.
How you can get involved
Small businesses are the backbone of Canada’s economy, but your voice needs to be heard.
- Sign the petition to bring faster payments, fairer loans, and lower fees to Canada: Sign here
- Share it with your accountant, your bookkeeper, and fellow entrepreneurs.
- Stay informed. Frameworks are being shaped right now, and small business owners must be at the centre.
It is time for Canada to catch up. Sign the petition, join the conversation, and help push for a financial system that works for small business owners, not just the big banks.
FAQs
What is open banking in Canada?
Open banking allows you to securely share your financial data with trusted apps and services, putting control in your hands.
How will open banking help small businesses?
It saves time, reduces costs, and improves access to loans by making financial data instantly available.
Is open banking safe?
Yes. Open banking frameworks are designed with strict security standards and give you full control over who accesses your data.
When will open banking launch in Canada?
The government is currently working on it, but adoption is slower than in the UK and Australia. That is why small business voices are crucial now.
How do I support open banking?
You can sign the petition here and share it with your network.
