The Financial Conduct Authority (FCA) has published a vision for open finance that would give consumers and businesses greater control over their financial data, potentially enabling better deals on financial products.
Under the proposal, individuals and businesses could securely share their financial data with a range of providers, giving firms a more complete picture of their finances. The FCA said this would allow for more personalised and inclusive services, more competitive pricing, and stronger fraud protection.
The regulator said it would prioritise examining how open finance could help small and medium-sized enterprises (SMEs) improve access to credit and accelerate loan applications, as well as how it could help consumers manage mortgage access.
“Open finance has the potential to transform how people interact with financial services. By giving consumers and businesses more control over their own financial data, we can help them access credit, secure better deals, and receive more customised support – while fuelling innovation, competition and supporting economic growth,” said David Geale, executive director of payments and digital finance at the FCA.
To advance its plans, the FCA said it would engage with industry, consumer groups, and fellow regulators this year to develop practical open finance use cases through its Smart Data Accelerator and PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce.
Adam Jackson, chief strategy officer at Innovate Finance, said: “Just as open banking has sparked the growth of many UK fintechs, so open finance can power a new wave of innovation. By unlocking high-quality data in a way that secures consumer trust, open finance can be a foundation for widespread adoption of agentic AI.”
The FCA will work with HM Treasury on options for a regulatory framework by the end of 2027. Research by Open Banking Limited and EY suggests the combined economic impact of open banking and open finance could reach £7.4bn per year within five years. Open banking currently has approximately 17 million users, representing nearly one in three adults in the UK.
The announcement builds on months of preparatory work. In March 2025, the FCA ran a two-day sprint bringing together over 100 stakeholders, including regulators, fintechs, technology providers, and consumer organisations, to explore the practical foundations needed for open finance.
In November 2025, the FCA launched two TechSprints running through to February 2026 – one focused on mortgages and one on SME finance – in partnership with data infrastructure firm Raidiam, allowing firms to simulate and test data sharing through the Smart Data Accelerator.
The legislative groundwork has also advanced. The Data Use and Access Act 2025 received Royal Assent earlier in the year, providing the legal framework for sectoral Smart Data schemes, with open finance being the first critical deployment in financial services.
Open banking has seen a 53% year-on-year growth in payments in 2025, and, in 2026, HM Treasury is expected to introduce legislation granting the FCA new powers to set open banking rules, laying the foundations for a long-term regulatory framework. The FCA committed to publishing a full open finance roadmap, aligned with the UK Government’s National Payments Vision.
