Regulator says wider data sharing could speed lending decisions and improve affordability checks
Consumers and businesses may be given greater control over how their financial information is shared, under a new open finance vision published today by the Financial Conduct Authority (FCA).
The regulator said open finance could allow people and firms to share data securely with a broader set of financial services providers, with the aim of improving access to products including mortgages, investments, savings and pensions. The FCA argued that a fuller view of a customer’s finances could support more tailored services, tougher fraud controls and sharper pricing.
In the near term, the FCA said it would focus on how open finance might help small and medium-sized enterprises secure credit more quickly, including by reducing friction in loan applications. It also plans to examine how the approach could help consumers manage their finances and improve access to mortgages.
“Open finance has the potential to transform how people interact with financial services,” said David Geale (pictured right), executive director of payments and digital finance at the Financial Conduct Authority.
“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.”
The FCA said it would work this year with industry, consumer groups and other regulators to develop practical use cases. That work will be taken forward through the FCA’s Smart Data Accelerator and its PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce.
“Just as open banking has sparked the growth of many UK fintechs, so open finance can power a new wave of innovation,” said Adam Jackson, chief strategy officer at fintech industry body Innovate Finance. “By unlocking high quality data in a way that secures consumer trust, open finance can be a foundation for widespread adoption of agentic AI.
“We support collaboration between industry and the FCA to deliver the roadmap at pace, enabling agreement on priority use cases and datasets, and appropriate regulatory action to open these up to competition and innovation."
The regulator also said it would work with HM Treasury on options for a regulatory framework for open finance by the end of 2027. It added that firms would be supported to launch open finance products earlier where data access is already possible and permissions are in place.
“Open finance has the potential to transform how consumers access financial services and it is energising to see the FCA accelerating these plans,” commented Damien Burke, head of regulatory practice at banking and credit advisory consultancy Broadstone. “Leveraging this technology can create a market that enables institutions to have a clearer view of the consumers they support and drive economic growth via further innovation in the UK’s dynamic financial services sector.
“The success of open finance in the mortgage market will depend on how effectively lenders embed these insights into underwriting processes while maintaining robust risk controls. If implemented well, it could support a more inclusive lending environment that balances innovation with responsible affordability.”
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