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A variety of public and private players have announced plans to take part in the Centre for Finance, Innovation and Technology’s (CFIT) initial work to promote financial data use cases.
The CFIT announced on Thursday (July 13) that its initial "Open Finance Coalition" will demonstrate the power of leveraging financial data to deliver better financial outcomes to consumers and small and medium-sized enterprises (SMEs).
It also announced the first coalition partners who have committed to progressing open finance in the UK, alongside regulatory support from the Financial Conduct Authority (FCA).
“We have the foundations and all the ingredients to drive open finance forward,” said Charlotte Crosswell, chair of the CFIT. “Given the current challenges related to the cost of living, we firmly believe that by leveraging existing data and unlocking new datasets, we can have the biggest impact in the shortest time on the wellbeing of UK SMEs and consumers.”
Crosswell continued that the CFIT will be able to show the impact that an ambitious open finance roadmap can have. “The time for action is now, to ensure that we continue to lead the world in financial innovation whilst maximising economic growth across all regions of the UK.”
The coalition is made up of: the Association of British Insurers; Allen & Overy; Amazon Web Services; the City of London Corporation; Experian; EY; HSBC; IBM; Innovate Finance; iwoca; KPMG; Leeds City Council; Lloyds Banking Group; Mastercard; MBN Solutions; Monzo; Open Banking Limited; the Open Finance Association; Revolut; the Smart Data Foundry; and Zopa Bank.
“There’s never been a better time to support SMEs and help people improve their financial awareness,” said Kelly Devine, UK and Ireland chief at Mastercard. “If we can solve these challenges through innovation, we can bring millions of people into the financial fold and grow the economy.”
No organisation can do this alone, Devine added. “So by pooling the data, expertise and technology of this coalition, we can grow the UK fintech industry, supercharge innovation, and improve financial inclusion in the UK.”
Speaking to VIXIO, Nilixa Devlukia of the Open Finance Association said: "We are pleased to be founding partners for the CFIT Open Finance Coalition.”
“We look forward to working with CFIT and other industry partners to progress open finance in the UK, ensuring financial data is unlocked for the benefit of consumers and businesses that together with new and exciting propositions will deliver opportunities and growth for the UK economy."
Andy Sacre, head of payments at Monzo, echoed this, stating that the coalition could unleash the potential for open finance in the UK.
“Open banking-powered features are central to our mission to make money work for everyone and are loved by Monzo customers who benefit from visibility over every penny they spend, save and borrow across multiple accounts in one place.”
Sacre added that initiatives such as these are critical for the UK to establish a regime that encourages innovation and empowers customers to take control of their financial lives.
The open finance coalition will begin its programme of work this summer to identify and unlock access to data sources that have the potential to improve consumer financial outcomes and access to financial services for SMEs.
From September, working groups will develop the ideas, creating specific outputs, such as new proofs of concept, products or data partnerships between incumbents and fintechs that they argue will make a real difference to businesses and consumers across the UK.
The CFIT’s mandate stems from the Kalifa Review of UK fintech. Its mission is to unblock barriers to growth for financial technology and position the UK as a global leader in financial innovation.
Acting as a central convening force, the CFIT intends to bring together experts from finance, technology, academia and policy-making to identify and remove obstacles to fintech sector growth, support the creation of high-income tech-based employment across the UK and enable firms to achieve global scale.
“The UK pioneered the adoption of open banking, which today is used by over seven million consumers and businesses. Our vision is to build on this success, to forge a dynamic and inclusive financial data sharing market that is fit for the future,” said Andrew Griffith, economic secretary to the Treasury.
“I am thrilled that CFIT will be doing just that, as it launches its initial Open Finance coalition. This first coalition unites industry leaders and will harness the transformative potential of financial data to deliver better outcomes for consumers and SMEs in the UK,” he said.
