Open finance – feedback statement FS21/7
On 26 March 2021, the FCA summarised the feedback it received to its Call for Input in December 2019. This explored the opportunities and risks from open finance, as well as how to ensure it develops in consumers’ interests and the role the FCA could play.
By way of background, in its 2019/20 Business Plan, the FCA committed to leading the public debate on open finance and to setting up an advisory group to help drive forward its future strategy. This group is made up of industry experts, consumer and business representatives, academics and government departments. Its advice informed the FCA’s Call for Input.
In this feedback statement, the FCA set out the responses it received in relation to the following areas:
- maximising the potential of open banking
- key themes and issues for open finance – including its risks and benefits, feasibility and cost, the necessary regulatory framework, common standards and infrastructure
- the FCA’s draft principles for open finance
- the FCA’s role and next steps
The FCA’s vision for open finance is one in which:
- consumers and businesses:
– can grant access to their data to trusted third-party providers (TPPs) and in return gain access to a wider range of financial services/products
– have greater control over their data
– engage with their finances, and are empowered to make better financial decisions
- increased use of open finance services spurs greater innovation, benefiting consumers by providing a broader range of products and services that better suits their needs
- widespread use of new services improves the financial health of consumers and businesses in the UK
The FCA has stated that it will support the Government as it considers the timing, scope and nature of legislation on open finance.