Rebalancing risk to facilitate innovation and growth

The FCA's 5-year strategy, has 'innovation' mentioned on every single page. It is our mission to be a 'Smarter Regulator', and innovation is key to our plans to support economic growth.

We believe Open Finance is one such vector to deliver economic growth. Fintechs and innovative firms will play an important role in the launch of Open Finance, which will build on the success of Open Banking.

Open Finance will rely on more seamless data-sharing which could help consumers by unlocking product innovation, supporting consumer financial inclusion, offering more choice and better information.

Think about the last time you remortgaged. Smart Data sharing could have made that process more frictionless and might even have opened up better rates or more finance options.

To support the development of a smart data economy, we have launched our Smart Data Accelerator.

The Smart Data Accelerator is a catalyst to accelerate the development and implementation of Open Finance and broader Smart Data initiatives in the UK. It provides a safe space where firms, industry, policymakers, and international partners can come together to test, learn, and build the evidence that will shape the future framework.

Open Finance and a Smart Data economy thrive together: better data fuels AI, and smarter AI in turn improves Open Finance experiences, creating a cycle of mutual benefit.

Data is the lifeblood of innovation, and it is fundamental to the opportunities presented by artificial intelligence. Without high-quality, accessible data, AI cannot deliver on its promise. By opening up data sharing responsibly, we create the conditions for AI and other technologies to drive better consumer outcomes, support growth, and strengthen markets.

But as we move forward, there are a few necessities to bear in mind. Consumer Consent must be clear and meaningful. Secure API gateways must be built, so that data can move safely across systems and borders. And consumer trust must remain central, because only with trust will Smart Data reach its full potential.

We are also working with the Information Commissioner's Office to address any cross-regulatory issues which may arise as the project progresses.

So what's next? We are running experimentation, starting with SME finance and mortgages. If you are interested in joining a Techsprint, we plan to announce these later this year.