The UK’s FCA has announced a major new partnership to accelerate the development and adoption of open finance, aiming to give individuals and businesses greater control over their financial data and how they manage their money.
The initiative forms part of the FCA’s broader commitment, outlined in a letter to the Prime Minister in January, to foster digital innovation across financial services. Among its priorities, the regulator highlighted the importance of using its powers to promote open finance — with a particular focus on improving access to lending for small and medium-sized enterprises (SMEs).
To support these goals, the FCA will introduce a new open finance roadmap and strategy, launching two TechSprints designed to advance innovation in the sector. These sprints, running from 17 November 2025 to 12 February 2026, will focus on mortgages and SME finance respectively. Firms, industry representatives, policymakers, and international partners are invited to register by 2 November.
As part of its research efforts, the FCA commissioned KPMG and Europe Economics to analyse the potential benefits of open banking and open finance for both consumers and the wider financial services ecosystem. Their findings highlight that open banking has already transformed how people access and use financial products, while open finance could extend these benefits to a broader range of services, from investments to insurance.
The reports also caution that regulators must navigate key trade-offs as the framework develops, including ensuring data security, fostering innovation responsibly, and maintaining consumer protection.
In September, the FCA launched its Smart Data Accelerator, an extension of its regulatory sandbox designed to test real-world use cases of open finance. Through a collaboration with RaidiamLink, firms participating in the initiative will be able to simulate and test data sharing within a secure testing environment. This will enable developers to create smart data solutions that prioritise safety, privacy, and tangible benefits for consumers and communities.
The FCA previously ran an ‘Open Finance Sprint’ in March, which brought together regulators, FinTech firms, technology providers, and consumer advocates to explore how open finance can improve everyday financial experiences. The outcomes, published in July, laid the foundation for this next phase of innovation.
The FCA said the new partnership and upcoming TechSprints mark a significant milestone in shaping the UK’s open finance future — one that will build on the success of open banking to make financial services more inclusive, transparent, and efficient.
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