The Financial Conduct Authority (FCA) is exploring the opportunities presented by so-called ‘open finance’ with the launch of a Call for Input (CfI).
Open finance builds on the principles of open banking – utilising and sharing expansive data which supplies new and engaging ways for customers and businesses to make the most of their money, it would also extend those principles to a wider range of products.
The idea of open finance could hold significant benefits for a plethora of sectors including cash savings and mortgage markets, making it more accessible for consumers and businesses to compare the various elements of price and product.
As well as this, it could help widen access to advice and support, boost efficiencies for businesses and access to credit, and spur innovation.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, commented: “Data and technology are increasingly driving changes in financial markets. As a regulator, we need to understand how this change will shape markets and shape regulation in the future.
“We want to understand how open finance can develop to best meet consumers’ needs and enhance competition in the interests of consumers. We also want to understand what role we should play in supporting it.”
The FCA, which has been seeking to spearhead the discussion on the role and evolution of open finance, is seeking feedback to the CfI by 17 March 2020 and will publish a feedback statement in summer 2020.
The firm has set up an advisory group to help drive forward its future strategy. The advice of this group, which comprises industry experts, consumer and business representatives, academics and government departments, has also been published.