Open finance is an initiative to introduce a smart data scheme across the financial sector. Firms in the sector generally do not find it easy to share information about credit, banking, insurance and investments and where they do, there are of course also data security issues to consider. This means that processes for applying for bank accounts, mortgages etc. require duplication of the input of data by the applicants to enable the sharing of that data. In the way that open banking allows for payment data to be shared in a secure fashion, open finance will widen secure data sharing across a broader variety of products and services, making it easier for applicants to get better deals and access to financial facilities.
In April 2026 the Financial Conduct Authority (FCA) published a roadmap for 2025-2030 for open finance - open finance is a priority for the FCA (and part of the government’s Smart Data Strategy). They have reviewed the up to date position with open banking as well as the future of open finance and the roadmap gives clarity as to what will be delivered.
The expected opportunities for open finance are summarised by the FCA as:
- Giving consumers and small and medium-sized enterprises (SMEs) greater control over their own financial data, and unlocking faster and more personalised financial services.
- Stronger competition and greater incentives for firms to innovate and invest.
- Supporting wider economic growth across the economy.
The FCA will require input from their stakeholders to develop the regulatory framework and collaboration from regulators and the government to ensure that open finance can deliver better financial outcomes and economic growth.
A discussion paper is due to be published in Q4 2026 and this will set out the proposed regulatory framework which will enable data sharing to deliver high-impact use cases.
