FCA asks for proposals on how Open Finance could transform financial services
The Financial Conduct Authority (FCA) has today launched a Call for Input (CfI) on the opportunities presented by so-called ‘Open Finance’. Open Finance builds on the principles of Open Banking – the sharing of data which provides new ways for customers and businesses to make the most of their money. Open Finance would extend those principles to a wider range of products.
By making it easier for consumers and businesses to compare price and product features and switch product or provider, open finance could be beneficial in the general insurance, cash savings and mortgage markets. It could help widen access to advice and support, boost efficiencies for businesses and access to credit, and spur innovation.
The CfI will launch a discussion on the opportunities and risks arising from open finance, what is needed to ensure it develops in the best interests of consumers, and what role the FCA should play.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:
‘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 has been leading the public debate on open finance and set up an advisory group to help drive forward our future strategy. The advice of this group, which comprises industry experts, consumer and business representatives, academics and government departments, has also been published today.
The FCA is seeking feedback to the CfI by 17 March 2020 and will publish a feedback statement in summer 2020.
- Demand increases for Open Banking as user numbers grow to more than two million
- Moneybox app announces Open Banking merger with Santander
- Tesco Bank introduces new payment technology for 2.6 million credit card customers
- Revolut customer base to grow by a third by 2021
- Open Banking market value to reach $43.15 billion by 2026