"[This] could translate into more realistic borrowing limits and better-matched products"
For the mortgage market, the regulator said it will examine how open finance can help consumers manage and improve access to mortgages, as well as its uses in investments, savings and pensions. It also said the approach could support quicker loan applications for small and medium sized businesses, as part of a broader push to improve access to credit.
Open finance would allow people and businesses to share their financial data securely with financial services providers. The FCA said this could give firms a fuller view of a customer’s finances, which may support more tailored services, pricing and fraud protection.
The FCA said it will work with industry, consumer groups and other regulators this year to develop practical open finance use cases through its Smart Data Accelerator and PRISM Taskforce, with a regulatory framework expected by the end of 2027. However, it said firms could be supported to introduce open finance products sooner where they already have access to data and the right permissions are in place.
David Geale, executive director of payments and digital finance at the FCA, said: "Open finance has the potential to transform how people interact with financial services. By giving consumers and businesses more control over their own financial data, we can help them access credit, secure better deals and receive more customised support - while fuelling innovation, competition and supporting economic growth.”
Maria Harris, chair of the Open Property Data Association, said:
“The FCA’s open finance roadmap is an important and welcome step forward. Property and finance are two sides of the same coin, and for the homebuying process to truly improve, the data that underpins both must be compatible, consistent, and connected. We are actively collaborating with the FCA, Open Banking Ltd and the wider Smart Data Council to ensure our smart data schemes can operate together.
“We’re particularly pleased to see a commitment to a policy and technical sprint this year. Creating a framework that allows property, mortgage, and financial data to flow securely and seamlessly between systems is essential if we want faster transactions, fewer fall throughs, and greater transparency. OPDA is already contributing to this work through the FCA’s PRISM taskforce, helping to assess the impact of the priority use cases and ensure the foundations are right.
“Open finance has the potential to transform the homebuying journey – from faster mortgage approvals to more accurate affordability and smoother completions. But that can only happen if the underlying data is standardised, accessible, and trusted. This roadmap signals real momentum, and we’re pleased to be working with industry and regulators to deliver a better home buying and selling process, helping to drive economic growth and a more sustainable property market.”
Damien Burke, head of regulatory practice at Broadstone, commented:
“Open finance has the potential to transform how consumers access financial services and it is energising to see the FCA accelerating these plans. Leveraging this technology can create a market that enables institutions to have a clearer view of the consumers they support and drive economic growth via further innovation in the UK’s dynamic financial services sector.
“By enabling lenders to access a more complete, real-time view of a borrower’s financial position – including income patterns, spending behaviour and existing liabilities – affordability assessments can become far more accurate.
“This should help move the market away from blunt, one-size-fits-all criteria towards more tailored lending decisions that reflect how people actually earn and manage money today, particularly those with non-traditional or variable incomes.
“For consumers, this could translate into more realistic borrowing limits and better-matched products, reducing the risk of both overextension and unnecessary rejection. It also creates an opportunity for lenders to design more flexible solutions – whether that’s adjusting repayment structures, offering more responsive stress testing or identifying earlier interventions for those at risk of financial strain.
“The success of open finance in the mortgage market will depend on how effectively lenders embed these insights into underwriting processes while maintaining robust risk controls. If implemented well, it could support a more inclusive lending environment that balances innovation with responsible affordability.”
