OPEN FINANCE As open banking evolves to become open finance, we examine some of the current and potential uses of this financial innovation. We also look beyond open finance to explore the wider economic opportunities offered by smart data.Read our eBook – ‘From open banking to open finance’Scroll for more Journey to open finance In the six-plus years since open banking became a regulatory requirement in the UK, there are now more than 11 million users of this financial innovation. Millions of consumers use open banking-enabled apps and products to help them budget, build their savings, and manage debt. In addition, 750,000 small businesses benefit from real-time insights on their cash flow, and embedded finance links to help them get paid faster – enabled by open banking connections with their accounting software. Yet while open banking has made significant progress, its benefits have been limited to payments, current accounts, and credit applications. Open finance will extend these benefits to mortgages, pensions, investments and savings, while applying the same data sharing principles – smart data – to other key sectors will lead to a truly data-driven economy. What can it deliver? Savings Open finance could enable consumers and businesses to maximise the interest they earn by keeping the bulk of their money in interest-bearing savings accounts, only ‘sweeping’ the money to a current account when needed for mortgages, rent, supplier payments, or other bills. Find out more in our ebook Mortgages As well as cutting down on the paperwork required to validate home loans, open finance could also provide borrowers with a quick and personalised overview of suitable mortgage products across the market.. Property rentals Open finance will build on existing credit checking and referencing abilities, which speed up the rental process for tenants and landlords alike, offering ‘rental platforms’ alongside open finance-enabled ways to pay. Subscriptions Variable recurring payments for non-sweeping – a ‘smart Direct Debit’ – will give consumers more control over repeat expenditure on things such as entertainment services and gym memberships, helping to avoid the ‘subscription trap’. Pensions Providers will offer members a pensions dashboard with a complete view of all their finances (current accounts, savings, and investments), alongside links to related tools such as pensions and benefits finders, and rental tools. Investments As well as opening up wealth management to a wider audience (some low-cost apps offer a minimum investment of just £1), open finance will enable investment managers to reduce processing costs and complete digital onboarding and offer digital advice to a wider audience. Select to scroll to the previous slide Select to scroll to the next slide What’s driving the journey? In September 2024, the CMA officially confirmed the full completion of the final Roadmap for open banking. As we plan for the transition to a Future Entity and Long-Term Regulatory Framework, OBL now looks to the Joint Regulatory Oversight Committee to build a sustainable and competitive ecosystem that will unlock the full potential of open banking. The Data (Use and Access) (DUA) Bill will allow the government and regulators to extend the benefits of open banking and to mandate new smart data schemes in other sectors, including energy, telecoms, pensions, retail, mortgages, transport and insurance. Our guides below explore how smart data will work in some of these sectors in more detail. The aim is to create competition in those sectors and deliver better outcomes for consumers and small businesses, helping to build a world-leading open data economy which has the potential to boost the UK economy by an estimated £10 billion. Compare prices and tariffs Address the ‘loyalty penalty’ Facilitate one-click switching Deliver a data-driven economy Smart data economy The government’s smart data legislation aims to help consumers and businesses navigate complex markets. It will also help users to compare prices and find cost-effective tariffs for essential utilities such as energy, water, mobile phone packages, and broadband. This could potentially save hundreds of pounds on bills, and address the ‘loyalty penalty’ – the difference between what loyal and new consumers pay for the same service – that many customers face when trying to change providers. It could potentially facilitate the switch to a cheaper or more relevant product in a single click. For example, downloading mobile phone consumption data to find a better package and have the price comparison site or provider complete the transfer. With the proper safeguards and regulatory framework, smart data can transform the way we manage our entire economic lives, promoting greater financial well-being, and unlocking the benefits of a truly data-driven economy. Read our featured guides FROM OPEN BANKING TO OPEN FINANCE From mortgages to rentals, savings to subscriptions, and pensions to wealth management, our guide examines how open banking products and services are evolving – and how they could even transform the energy, water, and telecoms sectors. Find out more in our ebook GUIDE TO OPEN BANKING FOR SMALL BUSINESSES Many of the UK’s sole traders and small and medium-sized businesses struggle to access cost-effective lending, manage payments, and access real-time insights into their cash flow. Our at-a-glance guide explains the many benefits – including cost and time-savings – that open banking solutions can offer business owners. Find out more in our ebook open banking and smart data in the energy and utilities sector Our guide explains how open banking and smart data can help to transform how these services are consumed, managed, and paid for, and give people greater control over their energy usage and costs. Find out more in our ebook buying and renting property with open banking Our guide explains how open banking can help speed up some of the integral home-buying and property rental processes – from saving for a deposit to exchanging contracts – to help make buying and renting a seamless experience for buyers, vendors, renters, landlords, estate agents and conveyancers. Find out more in our ebook Select to scroll to the previous slide Select to scroll to the next slide
OPEN FINANCE As open banking evolves to become open finance, we examine some of the current and potential uses of this financial innovation. We also look beyond open finance to explore the wider economic opportunities offered by smart data.Read our eBook – ‘From open banking to open finance’Scroll for more
Savings Open finance could enable consumers and businesses to maximise the interest they earn by keeping the bulk of their money in interest-bearing savings accounts, only ‘sweeping’ the money to a current account when needed for mortgages, rent, supplier payments, or other bills. Find out more in our ebook Mortgages As well as cutting down on the paperwork required to validate home loans, open finance could also provide borrowers with a quick and personalised overview of suitable mortgage products across the market.. Property rentals Open finance will build on existing credit checking and referencing abilities, which speed up the rental process for tenants and landlords alike, offering ‘rental platforms’ alongside open finance-enabled ways to pay. Subscriptions Variable recurring payments for non-sweeping – a ‘smart Direct Debit’ – will give consumers more control over repeat expenditure on things such as entertainment services and gym memberships, helping to avoid the ‘subscription trap’. Pensions Providers will offer members a pensions dashboard with a complete view of all their finances (current accounts, savings, and investments), alongside links to related tools such as pensions and benefits finders, and rental tools. Investments As well as opening up wealth management to a wider audience (some low-cost apps offer a minimum investment of just £1), open finance will enable investment managers to reduce processing costs and complete digital onboarding and offer digital advice to a wider audience. Select to scroll to the previous slide Select to scroll to the next slide
Savings Open finance could enable consumers and businesses to maximise the interest they earn by keeping the bulk of their money in interest-bearing savings accounts, only ‘sweeping’ the money to a current account when needed for mortgages, rent, supplier payments, or other bills. Find out more in our ebook
Mortgages As well as cutting down on the paperwork required to validate home loans, open finance could also provide borrowers with a quick and personalised overview of suitable mortgage products across the market..
Property rentals Open finance will build on existing credit checking and referencing abilities, which speed up the rental process for tenants and landlords alike, offering ‘rental platforms’ alongside open finance-enabled ways to pay.
Subscriptions Variable recurring payments for non-sweeping – a ‘smart Direct Debit’ – will give consumers more control over repeat expenditure on things such as entertainment services and gym memberships, helping to avoid the ‘subscription trap’.
Pensions Providers will offer members a pensions dashboard with a complete view of all their finances (current accounts, savings, and investments), alongside links to related tools such as pensions and benefits finders, and rental tools.
Investments As well as opening up wealth management to a wider audience (some low-cost apps offer a minimum investment of just £1), open finance will enable investment managers to reduce processing costs and complete digital onboarding and offer digital advice to a wider audience.
Compare prices and tariffs Address the ‘loyalty penalty’ Facilitate one-click switching Deliver a data-driven economy
FROM OPEN BANKING TO OPEN FINANCE From mortgages to rentals, savings to subscriptions, and pensions to wealth management, our guide examines how open banking products and services are evolving – and how they could even transform the energy, water, and telecoms sectors. Find out more in our ebook GUIDE TO OPEN BANKING FOR SMALL BUSINESSES Many of the UK’s sole traders and small and medium-sized businesses struggle to access cost-effective lending, manage payments, and access real-time insights into their cash flow. Our at-a-glance guide explains the many benefits – including cost and time-savings – that open banking solutions can offer business owners. Find out more in our ebook open banking and smart data in the energy and utilities sector Our guide explains how open banking and smart data can help to transform how these services are consumed, managed, and paid for, and give people greater control over their energy usage and costs. Find out more in our ebook buying and renting property with open banking Our guide explains how open banking can help speed up some of the integral home-buying and property rental processes – from saving for a deposit to exchanging contracts – to help make buying and renting a seamless experience for buyers, vendors, renters, landlords, estate agents and conveyancers. Find out more in our ebook Select to scroll to the previous slide Select to scroll to the next slide
FROM OPEN BANKING TO OPEN FINANCE From mortgages to rentals, savings to subscriptions, and pensions to wealth management, our guide examines how open banking products and services are evolving – and how they could even transform the energy, water, and telecoms sectors. Find out more in our ebook
GUIDE TO OPEN BANKING FOR SMALL BUSINESSES Many of the UK’s sole traders and small and medium-sized businesses struggle to access cost-effective lending, manage payments, and access real-time insights into their cash flow. Our at-a-glance guide explains the many benefits – including cost and time-savings – that open banking solutions can offer business owners. Find out more in our ebook
open banking and smart data in the energy and utilities sector Our guide explains how open banking and smart data can help to transform how these services are consumed, managed, and paid for, and give people greater control over their energy usage and costs. Find out more in our ebook
buying and renting property with open banking Our guide explains how open banking can help speed up some of the integral home-buying and property rental processes – from saving for a deposit to exchanging contracts – to help make buying and renting a seamless experience for buyers, vendors, renters, landlords, estate agents and conveyancers. Find out more in our ebook