Growth, innovation, and what’s next for the Canadian market

Transcript 

00:00:00 - Introduction

Dan Killey kicked off with humor about being Canadian. He then invited Canadian customers and partners in the room to raise their hands. He acknowledged shared global pressures such as AI, geopolitics, economic uncertainty. Then, he shifted focus to unique Canadian challenges in the financial sector.

Firstly, Canada is lagging behind other markets in adopting consumer-driven or open banking. While progress began in 2023 with a formal economic statement and the passing of the Consumer-Driven Banking Act in 2024, recent political changes have stalled momentum. A federal election brought in a new Prime Minister and shifted government priorities toward economic stabilization. As a result, the open banking framework—initially expected by early 2026—is now uncertain. This lack of clarity poses strategic challenges for financial institutions trying to plan ahead for regulatory compliance and innovation.

Canada’s payments system is also behind, particularly when compared to regions like Europe. Basic limitations—such as being unable to transfer more than $10,000 per week—create inefficiencies for both businesses and consumers. The Real-Time Rail (RTR) initiative, aimed at modernizing payment capabilities, is 60% complete and expected to finish its build phase in Q3. However, concerns remain about testing timelines and the risk that RTR could launch simultaneously with open banking. If both major reforms go live around the same time, it could overwhelm financial institutions unprepared for dual transformations.

Mergers and acquisitions are reshaping Canada’s banking landscape. All six of ebankIT's direct Canadian customers are currently involved in M&A activity, creating significant operational and technological disruption. One unique case involves two existing customers merging—forcing a complex integration of two versions of ebankIT platform. These mergers not only distract organizations from digital initiatives but also raise unprecedented challenges in data migration, platform consolidation, and change management across internal teams.

00:05:00 - Canada's market disruption

The recent exit of a major digital banking competitor in Canada has created sudden market disruption. Approximately 170 financial institutions were left urgently seeking new digital banking providers. This unexpected shift has placed additional demand on vendors like ebankIT, as institutions look to re-platform quickly while also grappling with other major changes like economic pressures, open banking readiness, and payments modernization. For providers, this creates a wave of opportunity but also a test of scalability and responsiveness.

Despite delays and headwinds, the Canadian market is undergoing massive transformation. Between M&As, tech adoption, regulatory shifts, and AI disruption, it's an exciting yet complex time for digital banking in Canada.