The Financial Conduct Authority (FCA) commenced a Call for Input (CfI) on opportunities created by Open Finance.
Open Finance builds upon the open banking principles of improving the sharing of data between firms to enhance offerings for consumers. If Open Finance Is adopted, it would see these standards expanded to include a wider range of products.
This regulation would support the general insurance, cash savings and mortgage markets by making it easier for consumers and businesses to compare price and product features and switch product or provider.
Through this CfI, discussions will be opened surrounding the opportunities and risks arising from open finance, what is needed to ensure it develops into the best interest of consumers and what role the FCA should play.
FCA executive director of strategy and competition Christopher Woolard 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 regulator is seeking feedback on open finance until 17 March 2020 and will then publish a statement in the summer of the year.
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