FCA outlines plans to give consumers greater control over financial data
The Financial Conduct Authority has set out a new vision for open finance, aimed at giving consumers and businesses greater control over their financial data and improving access to financial services.
The proposals would enable individuals and businesses to securely share their financial information with authorised providers, allowing for more tailored products and services across areas such as mortgages, savings, investments and pensions.
According to the regulator, open finance could help firms develop a more complete understanding of customers’ financial circumstances, supporting more personalised offerings, improved pricing and enhanced fraud protection.
The FCA stated that it will prioritise exploring how open finance can support small and medium-sized enterprises in accessing credit more easily and accelerating loan application processes. It will also examine how the model could improve access to mortgage products for consumers.
David Geale, executive director for payments and digital finance at the FCA, said the approach has the potential to change how people engage with financial services by enabling greater control over personal data.
To advance the initiative, the FCA plans to work with industry stakeholders, consumer groups and other regulators throughout 2026. This engagement will focus on developing practical use cases for open finance through initiatives such as the Smart Data Accelerator and the PRISM taskforce.
The regulator also confirmed that it will collaborate with HM Treasury to develop options for a long-term regulatory framework by the end of 2027. In the interim, firms may be supported in introducing open finance products where appropriate permissions and data access are already in place.
The announcement builds on the existing framework for open banking, which allows customers to share payment data securely with third-party providers. The FCA noted that open banking already has approximately 17 million users in the UK.
Industry representatives have indicated that open finance could support further innovation across the sector by enabling wider use of financial data. The approach is also expected to contribute to increased competition and economic growth.
The FCA’s roadmap sets out a phased approach, combining short-term development of use cases with longer-term regulatory planning. The regulator stated that the initiative aims to create a more flexible and data-driven financial services environment while maintaining appropriate safeguards.