The FCA has published a call for input on the opportunities of open finance, which an industry expert has labelled as one of the “most important regulatory information calls of the next decade”.
In a paper published on its website today, the regulator says open finance builds on the principles of open banking which includes the sharing of data and provides new ways for customers and businesses to make the most of their money.
The regulator said open finance would expand those principles to other sectors and give consumers greater control over general insurance, investments, cash savings and mortgages.
Financial Technology Research Centre founder and director Ian McKenna said: “The FCA’s call for proposals on the potential of open finance is an important and welcome development. Of all the actors in the financial services arena, financial advisers have the greatest legitimate interest in leveraging data to help consumers take better financial decisions.
“It is noticeable that the regulator has identified that consumers want to be better off for having shared the data. This doesn’t necessarily mean a payment for data but may involve the sharing of valuable information and services.
“This will be one of the most important regulatory information calls of the next decade.”
Meanwhile, FCA executive director of strategy and competition Christopher Woolard, says: “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 is seeking feedback to the call for input by 17 March 2020 and will publish a feedback statement in summer next year.
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