Canada is moving from discussion to delivery. In Budget 2025, the federal government confirmed legislation to complete Consumer-Driven Banking (CDB) – often called Open Banking – signalling the start of an Open Data era for financial services. For credit unions, that means member-permissioned data becomes a standard input to faster, fairer lending. With rollout expected to begin in 2026, the window to prepare is now.
Why this matters for credit unions
Traditional models still turn away too many creditworthy people and small businesses. Younger members and newcomers are declined more often because files are thin. Many viable SMEs face hurdles because underwriting can’t see real cashflow quickly enough. Open Data closes these gaps by bringing in current-account information under member consent – verified income, payment behaviour, recurring commitments, and cashflow health.
As we’ve seen in the UK, combining consented bank data with bureau data delivers faster decisions, fairer acceptances, and clearer audit trails. For Canadian credit unions, it’s a practical way to grow membership and serve communities without loosening risk appetite.
What changes in practice
- Consent becomes standard – members permission their data to be shared securely with accredited parties.
- Read access comes first – the immediate opportunity is using account data to strengthen affordability checks and automate decisions.
- Participation – federal credit unions will be in scope; provincially regulated CUs can participate voluntarily. In practice, member expectations will make this a commercial norm.
Retail lending: beyond the credit score
Open Data turns affordability from guesswork into evidence:
- Income stability – including multi-source or gig income
- Payment reliability – rent, utilities, subscriptions and regular savings
- Cashflow health – early signs of stress so you can support members sooner
All of this uses read-access data – the same approach we use in the UK today.
Small-business lending: cashflow first
For SMEs, live transaction data unlocks quicker, more confident decisions:
- Inflow/outflow patterns, seasonality and working-capital cycles
- Faster calls for micro and new-to-credit businesses
- Cashflow-based offers – repayment plans that fit revenue, plus quicker top-ups
A strong first step is a working-capital or LOC offer at business account opening, sized by real cashflow.
What to do now
Start small, learn fast. Begin today using the data you already hold, and be ready to connect full CDB/Open Data feeds as they arrive.
Why NestEgg
NestEgg is the UK’s leading partner for loan decisioning in credit unions, trusted by 50+ CUs and 750,000+ applications. Our Decision Engine combines Open Data with bureau information to deliver faster approvals, fairer acceptances, and clear audit trails, all aligned to your risk appetite. A contained PoC lets you prove impact quickly and scale with confidence.
Join us on 12 November
We’ll share UK lessons and a practical readiness roadmap for Canadian credit unions.
Date: Wednesday 12 Nov 2025
Time: 10:00 AM PT / 1:00 PM ET
Format: Online
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