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. It could help widen access to advice and support, boost efficiencies for businesses and access to credit, and spur innovation.
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.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:
‘Data and technology are increasingly driving changes in financial markets. As a regulator, we need to understand how this change will shape markets and shape regulation in the future.
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 has been leading the public debate on open finance and set up an advisory group to help drive forward our future strategy. The advice of this group, which comprises industry experts, consumer and business representatives, academics and government departments, has also been published today.
The FCA is seeking feedback to the CfI by 17 March 2020 and will publish a feedback statement in summer 2020.
Notes to editors
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