The Financial Conduct Authority published a call for inputs on Open Finance, building on the principles of Open Banking, the sharing of data which provides new ways for customers and businesses to engage with their money and make the most of it. techUK members worked together on a coordinated response to fully explore the opportunities and address some of the challenges which come with Open Finance.
The members of techUK are broadly in favour of the concepts behind open finance, as outlined in the FCA Call for Input. A customer’s financial situation is much more than just transactions history, real-time account balances or loan payment history. To fulfil the promise of Open Banking, customers need to be able to securely share a wider pool of data including for example: pension, insurance, mortgages, etc. Therefore, for customers to get the most from both their data and money, there is a need to extend the scope of Open Banking.
Open Banking has made some good headway but has been slow to reach a wider market. According to the Open Banking Implementation Entity, 200 million monthly calls have originated from the open banking push which has seen the banks connect to 204 active and regulated TPPs. We clearly see that there is an appetite for the new and improved services unlocked through open data initiatives and techUK believes that TTPs numbers are customer use will increase over time.
In order to maximise the benefits from financial data, the UK needs a system which ensures consumer protection, guarantees system resilience and delivers interoperability. To achieve this, techUK calls for the development of an overarching strategy for data sharing over the longer term and for regulators across sectors to work with government on this very important point.
In its response techUK addresses many specific details including liability and privacy frameworks as well as APIs and the need for a vibrant ecosystem. Find out more and download techUK’s consultation response below.