OFA supports CFIT's Open Finance report's findings

The OFA underscored its full support regarding the Open Finance Blueprint Report’s recommendations, with the organisation aiming to enable an accountable body to advance the Open Finance agenda while assisting the need to identify a commercially viable approach to incentivise participants to share financial data. Also, the OFA supports the establishment of a task force to prioritise the development of Open Finance APIs to operate in parallel to the current Open Banking JROC workstreams.

Furthermore, research shows that providing Open Finance and personal data mobility can increase UK GDP by GBP 30.5 billion. The coalition's work supports the benefits of Open Finance as confirmed by proofs of concept with Citizens Advice and HSBC UK, demonstrating the potential of data access in offering financial advice and improving small and medium-sized enterprises (SMEs) access to lending. This could allow Citizens Advice to enable an additional 150,000 clients annually, with data suggesting that over 25% of SMEs that do not utilise Open Finance risk missing out on credit and access to finance.

When it comes to the creation of additional Open Finance APIs, the OFA requested financial institutions and regulators to expand the ecosystem to integrate access to data commonly available through consumer and business banking apps, such as savings, mortgages, and loan accounts. In addition, the organisation underscored the importance of ASPSPs to make types available to establish financial services that are more accessible, inclusive, and beneficial for SMEs and their customers. The data provided could come alongside wider information sourced from new data holders like credit agencies. The OFA expressed its agreement with CFIT’s assessment that with no regulatory requirement to make data accessible, data sharing is set to become more restricted and only take place if incentives are aligned between all parties involved in holding and demanding consumer data. Therefore, the OFA reinforces the development of an independent body to guide the creation of data sharing beyond Open Banking, while also advocating for regulation as a method to help drive adoption amongst data holders.

The coalition focuses on shaping the future of Open Finance and supporting the delivery of its capabilities, including enhanced financial control, and access to lending for SMEs and consumers, while assisting the UK’s Smart Data economy objectives.

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