Open finance has the potential to greatly benefit consumers, but raises questions of data ethics, according to industry stakeholders surveyed by the City regulator. The Financial Conduct Authority (FCA) published a feedback statement today on its call for input on open finance. The term refers to the extension of open banking-like data sharing to a wider range of financial products, such as savings, investments, pensions and insurance
The FCA’s call for input launched in December 2019 and closed in October 2020, having received 169 responses from industry stakeholders regarding their views on open finance. Responses showed that open finance can increase access to a wider range of more individually tailored products, empower consumers and businesses to make more informed financial decisions and make it easier for consumers and businesses to compare price and product features and switch easier.