The Financial Conduct Authority has outlined its vision for open finance, aiming to give consumers and businesses greater control over their financial data and improve access to products including mortgages and loans.
Under the proposals, individuals and firms will be able to securely share financial data with providers, enabling more tailored products, improved pricing and stronger fraud protection.
The regulator said open finance could play a key role in improving access to mortgages, while also helping small and medium-sized enterprises (SMEs) secure credit more quickly and efficiently.
The initiative builds on the success of open banking and forms part of a wider push to increase competition and innovation across financial services.
MORE CONTROL
The FCA will now focus on developing practical use cases through industry collaboration, with work being driven by its Smart Data Accelerator and PRISM taskforce.
David Geale (main picture, inset), Executive Director for Payments and Digital Finance at the FCA, says: “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.”
Industry has broadly welcomed the move, pointing to the potential for open finance to drive the next phase of fintech growth.
WELCOME STEP FORWARD
Maria Harris, Chair of the Open Property Data Association, says: “The FCA’s open finance roadmap is an important and welcome step forward.
“Property and finance are two sides of the same coin, and for the homebuying process to truly improve, the data that underpins both must be compatible, consistent, and connected.
“We are actively collaborating with the FCA, Open Banking Ltd and the wider Smart Data Council to ensure our smart data schemes can operate together.”
SECURE AND SEAMLESS
And she adds: “We’re particularly pleased to see a commitment to a policy and technical sprint this year. Creating a framework that allows property, mortgage, and financial data to flow securely and seamlessly between systems is essential if we want faster transactions, fewer fall throughs, and greater transparency.
“OPDA is already contributing to this work through the FCA’s PRISM taskforce, helping to assess the impact of the priority use cases and ensure the foundations are right.
“Open finance has the potential to transform the homebuying journey – from faster mortgage approvals to more accurate affordability and smoother completions.
“But that can only happen if the underlying data is standardised, accessible, and trusted. This roadmap signals real momentum, and we’re pleased to be working with industry and regulators to deliver a better home buying and selling process, helping to drive economic growth and a more sustainable property market.”
