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UK Moves to Expand Open Finance, Empowering Consumers and SMEs

By  |  October 13, 2025

The UK’s financial regulator has announced new measures to accelerate the adoption of open finance, aiming to give consumers and businesses greater control over their financial data and how they manage money.

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    In a statement to the Prime Minister earlier this year, the regulator reaffirmed its commitment to promoting digital innovation and using its authority to develop open finance frameworks, potentially prioritizing lending access for small and medium-sized enterprises (SMEs). The initiative builds on the foundation established by open banking, which has already improved competition and accessibility in financial services, per Reuters.

    To further this effort, the regulator unveiled a major partnership and the launch of two new TechSprints designed to test and refine real-world applications of open finance. These sprints will focus on mortgages and SME finance and will run from November 17, 2025, to February 12, 2026. Interested firms, policymakers, and international partners can register by November 2.

    Earlier this year, the organization launched the Smart Data Accelerator, an extension of its existing sandbox program. This platform allows companies to experiment with data-sharing models safely and effectively. The regulator is now collaborating with RaidiamLink to use their testing environment, enabling participants to simulate data-sharing scenarios and create secure, consumer-focused smart data solutions.

    The announcement follows the publication of research by KPMG and Europe Economics, commissioned to evaluate the potential benefits of open banking and open finance for consumers and the wider financial sector. The report notes that while open finance offers opportunities to expand access to more financial products, regulators must weigh critical trade-offs—such as managing data privacy, ensuring technological readiness, and protecting consumers—according to Reuters.

    A previous Open Finance Sprint held in March brought together regulators, technology providers, fintechs, and consumer advocates to explore practical applications of open finance. The outcomes, published in July, helped shape the upcoming roadmap and strategy.

    Source: FCA