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FCA consultation – Call for Input (CfI) on open finance, 17 Dec 2019

FCA consultation – Call for Input (CfI) about ideas for open finance transformation

Background

  • The Financial Conduct Authority (FCA) has 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.
  • The FCA wants to understand how open finance can develop to best meet consumers’ needs and enhance competition in the interests ofconsumers and to understand what role the FCA should have to support these changes.

Impacts

  • 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”.
  • 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.

Timeline with relevant dates to be logged on regulatory calendar

  • Consultation opens on 17 December 2019
  • Consultation closes on 17 March 2020

Next steps

Any respondents need to send comments to the FCA.