UK fintechs call for a more market-led approach to providing open finance services

Monday 4 January 2021 12:22 CET | News

A group of UK-based startups has asked the Financial Conduct Authority (FCA) to look into ending the control of traditional banking institutions, specifically their use of consumer data.

The companies have stated that this move should increase healthy competition in financial services such as savings, credit, mortgages, and pensions.

The Coalition for a Digital Economy (Coadec), which serves as the policy voice of fintech startups and other tech scaleups is recommending a more market-led approach to providing Open Finance services (somewhat like in Australia).

Coadec is calling on the FCA to put an end to what they consider to be an overly standardised approach to offering these types of financial services. The Coadec consortium includes fintech unicorn TransferWise and Seedrs. The group suggested that the FCA needs to ‘break banks’ and offer a more transparent open banking system.

The fintech companies stated that there must be an end to bank charges on third-party firms for accessing their financial data. They also recommended removing the 90-day re-authentication requirements, which asks customers to re-authorise their banking provider to release their financial data for use by other parties.

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Keywords: UK, fintech, FCA, Open Banking, banks, financial services, Coadec, Open Finance, TransferWise
Categories: Banking & Fintech
Countries: United Kingdom
This article is part of category

Banking & Fintech