Global: UK Data Access Legislation Sets Stage for Transition from Open Banking to Open Finance

LONDON — A newly introduced data access bill in the UK is poised to accelerate the transformation of open banking into a broader open finance ecosystem, enabling consumers to share financial data across a wider spectrum of services—including energy, telecommunications, transport, and retail.

The legislation lays the groundwork for extending open data principles beyond traditional banking, embracing sectors such as insurance, investments, pensions, and credit services. This expansion aims to foster a more integrated and competitive financial environment while empowering consumers with greater control over their data.

One potential application could see insurance providers aggregating pension data or accessing multi-bank deposit and loan information via a single interface—offering tailored services with greater transparency and convenience.

Early Innovation Already Underway

The Centre for Finance, Innovation and Technology (CFIT) has already developed two open finance prototypesfocused on delivering enhanced financial advice for vulnerable consumers and streamlining credit assessments for SMEs. These real-world demonstrations highlight the value of interoperable data-sharing in promoting financial inclusion and access to capital.

Additional use cases being explored include the integration of mortgage data to accelerate property transactions, and the facilitation of real-time comparisons for utility services, ensuring consumers secure the best possible deals.

Sector Leadership Responds

Commenting on the legislation’s potential impact, Henk Van Hulle, CEO of Open Banking Limited, described the bill as a critical inflection point:

“This is a landmark moment for the sector, but it is just the beginning. Now is the time to turn these foundations into real-world outcomes which empower consumers, drive innovation, and unlock growth.”

Van Hulle urged continued collaboration among government, regulators, and industry players to shape a robust open finance ecosystem that delivers tangible benefits for individuals and businesses.

“The coming months will see important choices made that will frame the type of ecosystem and outcomes we deliver in the years to come,” he added.

Towards a Connected Data Economy

By enshrining data portability and consent-driven sharing into law, the UK aims to set global standards for a smarter, more connected data economy. The open finance model envisaged under the new bill is expected to catalyse innovation, boost market competition, and elevate financial well-being for consumers across sectors.