FCA calls for input on new model for open finance

The Financial Conduct Authority has issued a call for input on proposals to extend open banking rules to a wider range of products, under a new model billed as 'open finance'.

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FCA calls for input on new model for open finance

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The revised Payment Services Directive (PSD2) mandated the right of access to payment account data to increase innovation and competition in the payments sector.

The FCA believes that by making it easier for consumers and businesses to compare price and product features and switch product or provider, open finance could be beneficial to a wider range of services in the general insurance, cash savings and mortgage markets.

"It could help widen access to advice and support, boost efficiencies for businesses and access to credit, and spur innovation," states the regulator, which in July established an advisory group to mull over the opportunities presented.

Christopher Woolard, executive director of strategy and competition at the FCA, says: "We want to understand how open finance can develop to best meet consumers’ needs and enhance competition in the interests of consumers. We also want to understand what role we should play in supporting it."

The FCA is seeking feedback to the CfI by 17 March 2020 and will publish a feedback statement in summer 2020.

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