Canada’s financial sector is on the brink of a generational transformation. With the 2025 open banking mandate fast approaching, Canadian banks face a non-negotiable regulatory deadline that will reshape the industry. This mandate requires financial institutions to enable secure, standardized data sharing with accredited third parties, empowering consumers, fostering competition, and driving innovation. For technology and compliance leaders, the challenge is clear: modernize legacy core systems to meet regulatory requirements—or risk regulatory scrutiny, reputational damage, and loss of market share to more agile competitors.
Canada’s open banking framework is characterized by a strong emphasis on security, privacy, and interoperability. Banks must not only enable secure data sharing and seamless integration with third-party providers, but also ensure robust compliance with evolving standards. The regulatory environment, underpinned by laws such as PIPEDA, demands:
The 2025 deadline is more than a compliance challenge—it is a catalyst for broader digital transformation. By embracing open banking, Canadian banks can:
Despite Canada’s reputation for financial stability and robust regulatory oversight, many banks are still reliant on aging, monolithic core banking systems. These platforms are costly to maintain, difficult to integrate, and ill-suited to the demands of real-time data sharing, rapid product innovation, and seamless ecosystem integration required by open banking. The risks of failed modernization are significant:
Coreless banking offers a pragmatic, future-ready solution. By decoupling critical banking functions from the legacy core and adopting modular, cloud-native architectures, Canadian banks can achieve the agility, scalability, and resilience required for the open banking era. This approach enables:
Cloud-native, API-driven platforms are the backbone of coreless modernization. Unlike traditional “lift-and-shift” migrations, true cloud transformation means reimagining technology stacks, operating models, and customer journeys from the ground up. The benefits are clear:
Cloud also democratizes access to modern engineering tools, making it easier to attract and retain top technology talent while reducing operational costs. With modular architectures, banks can modernize at their own pace, integrating new capabilities without disrupting critical operations.
Modernizing the core is a complex, high-stakes endeavor. Publicis Sapient’s playbook for Canadian banks emphasizes:
Our proprietary AI platform, Sapient Slingshot, is purpose-built to de-risk and accelerate core modernization. Slingshot automates and streamlines the software development lifecycle—from code generation and testing to deployment and maintenance—enabling:
With increased data sharing comes heightened risk. Open banking must build on Canada’s strong data privacy standards, embedding robust cybersecurity frameworks and privacy controls into every layer of the technology stack. Secure APIs, token-based authentication, and continuous monitoring are essential to protect customer information and maintain regulatory compliance. Trust is the key driver of customer adoption—banks must be transparent about data usage, provide clear consent mechanisms, and deliver tangible value in exchange for data sharing.
By partnering with Publicis Sapient and leveraging coreless, cloud-native architectures, Canadian financial institutions can:
The 2025 open banking mandate is more than a compliance challenge—it is a launchpad for the next era of Canadian financial services. By embracing coreless banking, leveraging tools like Sapient Slingshot, and partnering with Publicis Sapient, Canadian banks can not only meet regulatory requirements but also lead the market in customer experience, innovation, and growth.
Let’s build the future of Canadian banking—together.
Ready to start your coreless banking journey? Connect with Publicis Sapient’s Canadian financial services experts today.