In our 2019/20 business plan we committed to leading the debate on open finance. We published the Call for Input in December 2019. Following the coronavirus pandemic, we gave stakeholders until October 2020 to respond and we received 169 responses.
Responses show that open finance could potentially offer significant benefits to consumers, including increased competition, improved advice and improved access to a wider and more innovative range of financial products and services.
It would also create or increase risks and raise new questions of data ethics. Appropriate regulation will be essential to managing those risks and giving consumers the confidence to use open finance services.
Reponses also showed that:
- Open finance could be a significant undertaking for firms. This is particularly important given the change in operating environment as a result of Covid-19 and its ongoing impact.
- The implementation of open finance should be proportionate, phased and driven by consideration of how consumers will use and interact with it.
- There is a degree of consensus around the key building blocks needed for open finance to develop in the interests of consumers. These include a legislative and regulatory framework, common standards and an implementation entity.
We will continue to work with the Government to support the design of future Smart Data legislation and support industry-led efforts to develop common standards and roadmaps to open finance. We will also continue to encourage open finance and digital identity propositions to apply for our sandbox and direct support.
The feedback statement includes more detail on respondents’ views and next steps.