The Financial Conduct Authority is looking into whether financial service companies, including general insurance firms, should share customer data with outside competitors – a concept called “open finance.”
The idea builds on existing “open banking” rules that allow outside firms to access customers’ bank account data with their consent – and thereby provide consumers and businesses with more choices and services.
Recognising that “open finance” could potentially “widen access to advice and support, boost efficiencies for businesses and access to credit, and spur innovation,” the FCA has launched a call for input on the opportunities presented by the concept.
“Data and technology are increasingly driving changes in financial markets,” said Christopher Woolard, executive director of strategy and competition at the FCA. “As a regulator, we need to understand how this change will shape markets and shape regulation in the future. We want to understand how open finance can develop to best meet consumers’ needs and enhance competition in the interests of consumers. We also want to understand what role we should play in supporting it.”
The FCA is seeking feedback by March 17 and will publish a feedback statement in the summer 2020.
