The Competition Bureau just told Canadians they're leaving billions on the table because moving their data feels like moving apartments. And honestly? They're not wrong.
On January 15th, the Bureau released its most significant report on data portability to date, complete with something regulators rarely provide: actual dollar figures. The findings should grab the attention of every executive in Canadian financial services.
The Numbers Don't Lie
The report focused on insurance as a case study, but the implications extend far beyond home and auto coverage.
The Bureau estimates that proper data portability in the insurance sector alone could save Canadians between $1.1 billion and $3.8 billion annually. About $1.57 billion would come from people switching to cheaper plans. Another $2.26 billion represents the value of time saved from not re-entering the same information across multiple platforms.
Extrapolate that across banking, telecommunications, and healthcare, and you're looking at a fundamental shift in how Canadians interact with service providers.
Here's the uncomfortable truth for incumbents: the Bureau's research found that only one in four Canadians actually switches providers, even when better options exist. The average Canadian could save $1,860 per year simply by renegotiating or switching. But the friction of moving data creates what economists politely call "consumer inertia."
The rest of us call it a business model.
Why This Matters Now
This report didn't arrive in a vacuum. It landed alongside some significant legislative momentum.
The Consumer-Driven Banking Act, introduced as part of Bill C-15, establishes Canada's open banking framework, with the Bank of Canada taking oversight responsibilities. Implementation is targeted for early 2026, with write-access functionality (think: initiating payments and account creation) expected by mid-2027.
The UK provides a useful preview. Seven years after launching open banking, they now have over 11.7 million active users and process more than 22 million open banking payments monthly. Their experience suggests that early adopters capture disproportionate market share while laggards scramble to comply.
The Opportunity Hidden in the Mandate
For forward-thinking institutions, data portability is more than a compliance exercise. It's a customer acquisition strategy in disguise.
Consider the math: if switching becomes easier, institutions that offer superior products, faster service, and better rates will attract customers who were previously trapped by paperwork. The winners will be those who can onboard seamlessly, underwrite quickly, and deliver value from day one.
For mortgage lenders specifically, this shift could accelerate everything from application to funding. When a borrower's financial history travels with them, verification becomes faster, fraud detection improves, and the entire process moves from weeks to days.
The Bureau's report explicitly notes that Canadians want this. Their survey of over 3,000 people found strong support for data portability, though privacy concerns remain top of mind. Institutions that can demonstrate robust security alongside seamless experiences will have a significant advantage.
What Smart Executives Are Doing Now
The implementation timeline gives institutions roughly 12 to 18 months to prepare. That window is shorter than for most technology transformation projects, meaning decisions made in the next quarter will determine competitive positioning for the next decade.
Three priorities stand out:
First, assess your data architecture. Can your systems receive and send standardized data through APIs? If your infrastructure requires manual intervention for basic data requests, you're already behind.
Second, rethink your customer retention strategy. When switching costs drop, the only moat left is genuine value. What keeps customers with you when leaving becomes easy?
Third, consider your offensive play. Which customer segments are currently underserved by competitors who rely on friction rather than excellence? Those customers are about to become accessible.
The Bottom Line
The Competition Bureau's report isn't just a policy document. It's a preview of a market where customer data flows freely, switching costs disappear, and competitive advantage depends entirely on the quality of your offering.
Some will see this as a threat to existing business models. Others will see it as the most significant opportunity in Canadian financial services in a generation.