The FCA is examining how open finance can help consumers and businesses share their financial data securely to access better deals.
Making it easier for consumers and businesses to disclose their finances to financial services firms should enable the latter to provide more personalised, competitive services with stronger fraud protection, the regulator said in a paper published today (14 April).
In 'Open finance: our vision for a smart data future', the FCA said it will prioritise exploring how open finance can help SMEs improve access to credit and speed up loan applications. It will also examine how open finance can help consumers manage and improve access to mortgages.
The regulator is looking to progress plans "as quickly as possible" and will engage with industry, consumer groups and fellow regulators this year to develop a range of practical open finance use cases through the FCA's Smart Data Accelerator and PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce.
The FCA will also work with the treasury to develop a regulatory framework for open finance by the end of 2027. Firms will be supported to introduce open finance products sooner where they are already able to access data and appropriate permissions are in place.
David Geale, executive director of payments and digital finance at the FCA, said: "Open finance has the potential to transform how people interact with financial services.
“By giving consumers and businesses more control over their own financial data, we can help them access credit, secure better deals and receive more customised support – while fuelling innovation, competition and supporting economic growth.”
Adam Jackson, chief strategy officer at Innovate Finance, added: “Just as open banking has sparked the growth of many UK fintechs, so open finance can power a new wave of innovation.
“By unlocking high-quality data in a way that secures consumer trust, open finance can be a foundation for widespread adoption of agentic AI.”
