New Smart Data Group aims to unlock £27.8bn in economic potential, with payments and financial services key beneficiaries.
Open Banking is set to take centre stage in the UK’s next wave of payment innovation, as the government launches a new Smart Data Group to extend the success of secure data sharing across sectors.
Unveiled in Parliament on June 19, the group aims to unlock an estimated £27.8bn in economic value through improved data access, with financial services and payments expected to be among the biggest winners.
The group will be chaired by former Minister for Smart Data Paul Scully , with advisory board members including Jonathan Ashworth, Iain McNicol, Martin Callanan and Robbie Gibb.
“We’ve seen how Open Banking laid the foundations for a more competitive, consumer-focused financial system. Smart Data takes that principle and scales it across sectors,” said Huw Davies, Co-Founder and CEO of Ozone API.
“The opportunity to build interoperable, secure frameworks that work across industries is not just exciting, it’s essential.”
Open Banking at the heart
Although the Smart Data Group’s remit spans energy, telecoms, finance and retail, Open Banking’s proven success is a clear foundation for this next step. With veterans Richard Newman and Clare Ambrosino among those leading the charge, payments are well-positioned to shape Smart Data’s real-world impact.
Their leadership also puts payments in a strong position, working closely with regulators and policymakers to turn Smart Data policies into real-world solutions. This offers an opportunity to address some of the commercial and operational hurdles Open Banking has faced in the UK.
“During my time as Smart Data Minister, I saw firsthand the immense potential of Smart Data to transform services, empower consumers, and drive real economic value,” Scully said.
“The Smart Data Group will help us achieve that potential in a cost-efficient and collaborative way, ensuring the UK remains at the forefront of global innovation.”
From promise to profitability
A key challenge UK Open Banking has encountered is commercialising its full potential. This is a point highlighted by James Neville, CEO of Yaspa, in an interview with Payment Expert, who believes the US has done a much better job.
Smart Data’s broader scope could help overcome these barriers by supporting innovation and collaboration beyond finance.
Cross-sector co-operation will create new synergies, such as integrated billing and bundled services combining payment processing with utilities or telecoms, paving the way for new revenue streams and smoother customer experiences.
The group also builds on the foundation of the Data (Use and Access) Bill, underpinning trust and security. For payments, this translates into a safer environment for data sharing, helping reduce fraud risks and boosting consumer confidence.
Crucially, secure, user-consented sharing of payment-related data will enable financial institutions and fintechs to develop more personalised payment solutions, improving customer engagement and service.
