The Financial Conduct Authority (FCA) in the UK has unveiled its comprehensive strategy for advancing open finance. This initiative is underpinned by a report from KPMG and Europe Economics, which outlines the significant benefits of open banking and finance for consumers.
Central to the FCA’s strategy is the introduction of a Smart Data Accelerator, along with two upcoming technology sprints. The regulator emphasizes that this approach aims to empower individuals in managing their finances and planning for their future.
The collaboration with KPMG and Europe Economics resulted in a detailed report detailing how open banking lays the foundation for improved diversity and accessibility in everyday financial transactions. The FCA believes that open finance can further broaden access to a wider array of financial products and services.
Notably, the report raises important considerations for regulators, as they seek to balance potential benefits with associated risks. Key factors include establishing robust data-sharing protocols, implementing appropriate technology, and developing systems that foster innovation while ensuring consumer protection.
Launched in September, the Smart Data Accelerator serves as an extension of the FCA’s regulatory sandbox, allowing real-world testing of open finance applications. The FCA is partnering with the tech firm RaidiamLink to facilitate data-sharing trials among participating companies.
Additionally, two technology sprints are scheduled between November 2025 and February 2026, focusing on the mortgage sector and small to medium-sized enterprises (SMEs), marking significant steps toward realizing the potential of open finance.