The Financial Conduct Authority (FCA) has set out its vision for open finance, outlining plans to give consumers and businesses greater control over their financial data to improve access to products, enhance competition and support economic growth.

Under the proposals, open finance would enable individuals and firms to securely share their financial data with a wider range of providers, spanning mortgages, savings, investments and pensions.

The FCA said this would allow firms to build a more comprehensive picture of customers’ financial positions, supporting more personalised services, improved pricing and stronger fraud protection.

The regulator confirmed that it would prioritise exploring how open finance could support small and medium-sized enterprises (SMEs), particularly by improving access to credit and speeding up loan applications.

It will also assess how the framework could help consumers better manage mortgages and access more suitable borrowing options.

FCA executive director of payments and digital finance, David Geale, claimed that open finance “has the potential to transform how people interact with financial services”, arguing that greater data control could help consumers secure better deals and access more tailored support, while also driving innovation and competition.

To accelerate progress, the FCA will work with industry stakeholders, consumer groups and other regulators throughout the year to develop practical use cases.

This will be delivered through initiatives including the Smart Data Accelerator and the Prioritisation and Real-world Insights Selection Matrix (PRISM) Taskforce.

Commenting on the plans, Broadstone head of regulatory practice, Damien Burke, argued that the proposals could “transform how consumers access financial services” and help create a more innovative and inclusive market.

He suggested that enhanced data access could allow lenders to build a more accurate, real-time understanding of borrowers’ financial circumstances, improving affordability assessments and moving away from “one-size-fits-all” lending criteria.

Burke added that this could result in more realistic borrowing limits, better-matched products and earlier intervention for those at risk of financial difficulty, while also supporting individuals with non-traditional or variable incomes.

However, he noted that successful implementation would depend on lenders effectively integrating these insights into underwriting processes while maintaining robust risk controls. He argued that open finance could ultimately support a more inclusive lending environment if executed well.

Looking ahead, the FCA confirmed it would work with HM Treasury to develop a regulatory framework for open finance by the end of 2027, while supporting firms to roll out products sooner where data access and permissions were already in place.

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