Research Note: Open banking and open finance in the UK

We commissioned research on the current state of open banking services, to shape the UK’s open finance strategy.

Earlier in 2025, we commissioned consultancies KPMG and Europe Economics to collate diverse views on open banking and open finance in the UK, based on desktop research of public information.

The research aimed to:

Provide a rigorous and evidence-based understanding of the current state of open banking services in the UK.
Inform the development of a strategic framework and theory of change for establishing open finance, and a quantification of the potential benefits that open finance could bring.

The findings summarised in this Research Note do not reflect FCA views or policy positions. Instead, they will contribute to our broader programme of work on open banking and open finance.

The note raises key trade-offs between the potential benefits of open finance, and the potential risks it could pose. This approach ensures we make balanced, risk-informed decisions that reflect the real-world complexity of the open banking and open finance markets and allow us to be a smarter, more adaptive regulator.

The note:

Highlights key trends in how open banking is being adopted.
Outlines what needs to be considered when designing and implementing open finance including outdated technology systems, inconsistent data standards and low consumer awareness.
Proposes a strategy and delivery plan to guide future regulatory and industry action.

This work complements previous stakeholder engagement, including the Open Finance Sprint held in March 2025, which brought together regulators, fintechs, technology providers and consumer advocates to explore sustainable and impactful use cases. We published outcomes from the sprint[2] in July 2025.

Next steps

Looking ahead, we will continue to build on this foundation through targeted initiatives and regulatory development, including:

SME Finance and Mortgages TechSprints

We will launch 2 TechSprints in autumn 2025 focused on small and medium-size enterprises (SME) finance and mortgages, building on momentum from the Open Finance Sprint. These sprints will test use cases and accelerate implementation to improve financial access and management.

Tech and infrastructure research

Research under the Smart Data Accelerator[3] will assess foundational technologies like AI, blockchain and quantum computing.

Findings will inform future infrastructure needs and regulatory considerations for scaling open finance.

Cross-sector and cross-border testing

We will explore smart data use cases beyond financial services to unlock wider consumer and business benefits. Internationally, we’re collaborating on Project Aperta to advance open finance interoperability, starting with trade finance and SMEs.

Regulatory framework design

We will reflect on the commissioned research findings to inform the design of the long-term regulatory framework for open banking.

Legislative implementation

Following the Data Use and Access Act receiving Royal Assent earlier in 2025, we are working closely with the Treasury to ensure that powers provided via secondary legislation enable effective regulation.

Future entity development

As announced in the future entity (FE) Feedback Statement[4], workshops with industry over autumn 2025 will inform our approach to establishing a future entity, expected to become the UK’s primary standard-setting body for open banking application programming interface (APIs). We expect an update by the end of 2025.

Commercial variable recurring payment monitoring

We are working with industry to introduce commercial variable recurring payment (VRP) services, which are expected to offer consumers greater flexibility and choice in how they make payments.

Roadmap publication

We will continue to engage widely with stakeholders and work closely with government to shape and publish an open finance roadmap by March 2026, to align with the UK Government’s National Payments Vision[5] and our 5-year strategy[6].

Authors

Aimee Murray and Jed Buckenham

Disclaimer

Research notes contribute to the work of the FCA by providing rigorous research results and stimulating debate. While they may not necessarily represent the position of the FCA, they are one source of evidence that the FCA may use while discharging its functions and to inform its views. The FCA endeavours to ensure that research outputs are correct, through checks including independent referee reports, but the nature of such research and choice of research methods is a matter for the authors using their expert judgement. This note is provided for general information only. The FCA does not guarantee the accuracy of this note. The FCA accepts no responsibility for any errors or omissions in this note or for any action taken based on the information provided.

First published: 06/10/2025 Last updated: 06/10/2025