The regulator said open finance could allow people and firms to share data securely with a broader set of financial services providers

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, 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, he said.

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, he said.