FCA launches call for input on open finance future
The UK’s Financial Conduct Authority (FCA) has launched a Call for Input (CFI) on the opportunities and potential of an open finance model.
Open finance builds on the operating model of Open Banking, namely the sharing of data to provide customers and businesses with new financial products and services. Under open finance the principles of Open Banking would be extended to an even greater field of channels and products.
“By making it easier for consumers and businesses to compare price and product features and switch product or provider, open finance could be beneficial in the general insurance, cash savings and mortgage markets,” writes the UK regulator.
“The CFI will launch a discussion on the opportunities and risks arising from open finance, what is needed to ensure it develops in the best interests of consumers, and what role the FCA should play.”
The regulator is looking for feedback by 17 March 2020, and plans on published a statement on the feedback it receives by summer of that year.
Christopher Woolard, executive director of strategy and competition at the FCA, says: “We want to understand how open finance can develop to best meet consumers’ needs and enhance competition in the interests of consumers. We also want to understand what role we should play in supporting it.”
The FCA committed to “leading the public debate” on open finance in its 2019/2020 business plan. It set up an advisory panel of “industry experts, consumer and business representatives” which informed the process leading to the CFI.