In December 2019, the Financial Conduct Authority (FCA) published a call for input, requesting views on the opportunities and risks arising from ‘open finance’. Open finance builds on open banking principles with the aim of giving consumers and businesses more control over a wider range of financial data, such as savings, insurance, mortgages, investments, pensions, and consumer credit.
The FCA sought views on what is needed to ensure open finance develops in the best interests of consumers, and what role it should play.
At the ODI, our mission is to work with companies and governments to build an open, trustworthy data ecosystem. We want a world where data works for everyone.
We responded to this call for input on the basis of our experience in open banking and across similar initiatives in other sectors, following our original report to HM Treasury and the Cabinet Office in 2014: Data Sharing and Open Data for Banks.
The ODI was also a member of the Open Banking Working Group that helped develop the standards and guidelines for open banking, and we continue to monitor and promote this initiative today.
We are now involved in the Open Finance Working Group which focuses on the social outcomes of open finance, and is led by the Finance Innovation Lab. We have also provided input to other sector-wide initiatives, working with Ofcom, Ofwat and Ofgem.
Our response focuses on data being as open as possible to maximise the opportunity for greater socially-focused innovation and transparency across economies and societies, including financial services.