Leaders highlight what they need to keep up with the ever-evolving commercial landscape
While Mark Carney has spoken about the importance of defence and other infrastructure spending to ensure that Canada stays ahead, business leaders also want urgent attention to be focused on the country’s financial and digital backbone.
According to new research, nearly two-thirds of business leaders want the modernization of the payments system and open banking fast-tracked to strengthen productivity and global competitiveness.
The KPMG Canada survey of 250 executives found that 65% believe Canada’s financial infrastructure needs immediate modernization to enable open banking, digital identity, and real-time payments. 58% say that without it, we risk falling even further behind.
"Canada is in the midst of a trade war, and it must do everything it can to insulate itself from outside economic threats,” says Geoff Rush, partner and national industry leader for financial services at KPMG in Canada. “We have an opportunity to advance our competitive position by modernizing one of our largest industries – financial services.”
Canada is developing two major digital infrastructure projects. Real-Time Rail (RTR) is a new national payment network allowing instant, 24/7 payment clearing and settlement between financial institutions, while open banking will allow consumers to securely share their financial data with financial institutions and fintechs, gaining better visibility and control over their finances.
Both projects have been delayed for years — but momentum is building. Open banking legislation passed in 2024, with a federal framework expected in 2025. RTR’s technical build wraps up in July, followed by a year of testing.
“Digital infrastructure advancements like the real-time rail and open banking will foster more competition, enable innovation, promote financial inclusion, and drive more growth and investment in Canada. We must seize this opportunity now, or we will fall behind,” Rush urges.
Almost two thirds of business leaders agree that open banking, digital ID, and RTR are foundational to a more resilient and inclusive economy.
"Without a real-time rail, payments can take days to be processed, exposing organizations to increased credit, liquidity, operational and systemic risks,” explains Rush. “Without open banking, consumers who want to engage with fintechs are forced to share their financial data through 'screen scraping,' which creates serious privacy concerns and deters them from signing up for the innovative services that fintechs offer. We need to reduce these risks and competitive barriers for Canadian businesses and consumers.”
In a separate global KPMG survey, 94% of Canadian financial institutions said they’re either planning or actively rolling out payment modernization programs, with top goals being faster processing, better customer experience, and stronger security. Most expect to invest between US$10–25 million in the upgrades.
