On 17 December 2019, the FCA launched a call for input exploring opportunities and risks arising from open finance.
The FCA refers to ‘open finance’ as the extension of open banking-like data sharing and third-party access to a wider range of financial sectors and products. Following the success of open banking in increasing innovation and competition in banking and payment services, the FCA is considering the potentially transformative benefits that could come from open finance.
The FCA’s vision for open finance is one in which:
- consumers and businesses can grant access to their data to trusted third-party providers (TPPs) and in return gain access to a wider range of financial services and products, have greater control over their data, engage with their finances, and are empowered to make better financial decisions;
- increased use of open finance spurs greater innovation, benefiting consumers by providing a broader range products and services that better suits their needs; and
- widespread use of new services improves the financial health of consumers and businesses in the UK.
Annex 1 sets out use cases for open finance in different financial services sectors, including investments, pensions, insurance, consumer credit and mortgages.
The deadline for comments to the call for input is 17 March 2020. The FCA intends to publish a feedback statement in 2020.