The FCA have published a feedback statement from their Call for Input on open finance. Open finance refers to the extension of open banking-like data sharing to a wider range of financial products, such as savings, investments, pensions and insurance.
The Regulator published the Call for Input in December 2019 and following the coronavirus pandemic, gave stakeholders until October 2020 to respond. The FCA received a total of 169 responses which demonstrated that open finance could potentially offer significant benefits to consumers, including increased competition, improved advice and improved access to a wider and more innovative range of financial products and services.
However, the Regulated also concluded that open banking could also create or increase risks and raise new questions of data ethics. The FCA stated that ‘appropriate regulation will be essential to managing those risks and giving consumers the confidence to use open finance services.’
You can read the Feedback Statement here.