The UK's Financial Conduct Authority (FCA) has published a framework vision for Open Finance, outlining how consumers and businesses could gain greater control over their financial data to obtain more competitive deals, improved credit access, and more personalised financial services.
Under the proposal, individuals and businesses would be able to share financial data securely with a range of service providers, giving those providers a more complete picture of their finances. The FCA has stated this could enable more personalised and inclusive services, more competitive pricing, and stronger fraud protection.
SME credit and mortgage access as priority use cases
The regulator has identified two priority areas for initial exploration. The first is how Open Finance can help SMEs improve access to credit and speed up loan applications, a long-standing structural challenge for smaller businesses that often lack the financial history or documentation required by traditional lenders. The second is how Open Finance can support consumers in managing and accessing mortgages more effectively.
To develop practical use cases, the FCA will engage with industry stakeholders, consumer groups, and fellow regulators throughout 2026. This work will be coordinated through two existing mechanisms: the FCA's Smart Data Accelerator and the Prioritisation and Real-world Insights Selection Matrix (PRISM) Taskforce.
Open Finance builds on the foundations of Open Banking, which has already reshaped parts of the UK's payments and lending landscape by enabling third-party access to current account data with consumer consent. Extending that principle to a broader range of financial products (including savings, pensions, and investments) represents a significant expansion in scope and regulatory complexity.
A company official at Innovate Finance noted that, as Open Banking has driven growth among UK fintechs, Open Finance could support a further wave of innovation, and that unlocking high-quality data with appropriate consumer trust safeguards could also serve as a foundation for wider adoption of agentic AI.
Regulatory framework expected by end of 2027
The FCA has confirmed it will work with HM Treasury to develop options for a formal regulatory framework for Open Finance, with that work to be completed by the end of 2027. In the interim, firms that already have access to the relevant data and appropriate consumer permissions in place will be supported in introducing Open Finance products ahead of the broader framework coming into effect.
The initiative reflects a wider policy direction in the UK towards harnessing smart data infrastructure to stimulate competition and economic growth, aligning Open Finance with existing government priorities in financial technology and digital public services.
