The FCA has announced a new partnership and a series of initiatives aimed at advancing open finance in the UK, signalling a major step towards giving consumers and businesses greater control over their financial data.
The regulator’s announcement follows its earlier commitment to the Prime Minister in January to accelerate digital innovation and prioritise open finance, particularly in the area of SME lending.
Ahead of launching its open finance roadmap and strategy, the FCA has revealed plans for two major TechSprints and the introduction of its Smart Data Accelerator. These efforts are designed to explore practical, safe, and scalable applications of open finance in collaboration with industry partners.
As part of this initiative, the FCA commissioned KPMG and Europe Economics to produce research analysing the potential benefits that open banking and open finance could deliver to both consumers and the broader financial services industry. The findings highlight that while open banking has already transformed how people manage everyday payments and accounts, open finance could extend these advantages to more complex financial products and services.
However, the report also emphasises that regulators will need to carefully balance the opportunities of open finance against associated risks. Key considerations include data-sharing frameworks, appropriate technology infrastructure, and systems that foster innovation without compromising consumer protection.
The FCA’s Smart Data Accelerator, launched in September, builds on the regulator’s successful sandbox programme. The new framework allows real-world testing of open finance applications and is supported through a collaboration with RaidiamLink, which provides a controlled environment where firms can simulate and test data-sharing models. This approach aims to ensure that solutions developed are secure, responsible, and beneficial to individuals and communities.
The FCA also announced two upcoming TechSprints, running from 17 November 2025 to 12 February 2026. One will focus on the mortgage market, and the other on SME finance. The regulator has opened registration for these events until 2 November, inviting participation from firms, policymakers, technology providers, and international partners.
These new initiatives follow the FCA’s successful Open Finance Sprint held in March, which brought together regulators, FinTech firms, technology innovators, and consumer advocates. The session generated practical ideas on how open finance can be applied to everyday financial challenges, with the outcomes published in July.
Together, the partnership, accelerator, and TechSprints mark a pivotal move in the UK’s journey towards a more connected and consumer-focused financial ecosystem—one that leverages data innovation to empower people and businesses to manage their finances more effectively.
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