Ottawa is making a fresh push to shake up Canada’s banking landscape, promising easier account transfers, lower fees, and new rules for emerging digital services as part of the 2025 federal budget. The government plans to eliminate transfer fees on investment and registered accounts, which often cost around $150 each.
It also intends to work with financial institutions to make switching primary chequing accounts less of a hassle and to ensure clearer guidance throughout the process. A broader review of ATM and Interac e-transfer fees is planned, along with efforts to bring more transparency to cross-border and foreign-exchange charges.
Finance Minister Francois-Philippe Champagne said the measures are meant to encourage more competition in both the financial and telecommunications sectors. The changes are expected to help fintech firms take on the country’s largest banks. Questrade Financial Group recently secured approval to launch Questbank, while Wealthsimple has expanded into chequing, credit cards, and mortgages and now oversees more than $100 billion in assets.
Stablecoin and open banking
Senior Bank of Canada official Carolyn Rogers has said that although concentrated banking can support stability, it can also limit innovation, productivity, and consumer choice. The budget builds on plans for open banking, which would give people greater control of their financial data and make switching easier.
The Bank of Canada will now oversee the framework, and the system is expected to allow payments by mid-2027. Other changes include raising the amount of funds immediately available from deposited cheques to $150 from $100 and shortening hold times, including for electronic and ATM deposits. Rules will apply to banks, trust companies, and loan firms.
Ottawa also plans to regulate fiat-backed stablecoins and permit payment providers to use approved versions for transactions. The Real-Time-Rail system, intended to support instant money transfers for payroll and major purchases, remains on track to launch next year.
These reforms follow a July 1 tax cut for the lowest income bracket, expected to save individuals up to $420 in 2026. Opposition parties argue the budget does not go far enough to address affordability pressures.
