The UK’s Financial Conduct Authority (FCA) has announced a collaboration with technology and data partners to accelerate the development of Open Finance.
The move is part of a more general effort to expand digital innovation in financial services and extend the principles of open banking to a wider range of financial products. Earlier this year, the FCA outlined its intention to advance Open Finance in a letter to the Prime Minister, emphasising its potential to improve consumer control and support lending to small and medium-sized enterprises (SMEs).
FCA launches Smart Data Accelerator initiative
As part of these efforts, the regulator has introduced the Smart Data Accelerator, an extension of its existing sandbox environment. The programme allows companies to test real-world use cases for Open Finance technologies in a controlled setting. Through a partnership with Raidiam, participating firms can use the company’s testing infrastructure to simulate secure data-sharing scenarios and explore new smart data solutions.
The FCA also commissioned KPMG and Europe Economics to assess the benefits of Open Banking and Open Finance for consumers and the wider industry. Their analysis concluded that while open finance could improve access to financial services, regulators must weigh the potential advantages against data security and consumer protection challenges.
In addition, the FCA is launching two TechSprints, scheduled between November 2025 and February 2026. One will focus on the mortgage sector, while the other will explore open finance solutions for SMEs. These sprints aim to bring together regulators, fintech firms, policymakers and international partners to test ideas and advance interoperability standards.
Officials from the FCA said the authority remains aligned with the government’s National Payments Vision, which aims to establish the UK as a global leader in Open Banking and Open Finance. The FCA plans to release a detailed roadmap and strategy for open finance by March 2026.
