A coalition of UK fintechs has signed an open letter calling on the government to fast track a 'smart data right' that enables consumers to control their data, opening up the potential of open finance.
The letter, organised by advocacy group the Coalition for a Digital Economy (Coadec), and signed by a host of challenger banks, data aggregators, personal financial management providers and payment firms, calls for a smart data right to be included in next year's Queen's Speech.
The UK led the world in rolling out an open banking regime. Nearly four million Brits have used open banking solutions over the last three years.
However, a report accompanying the letter warns that government intervention is needed in order to move beyond open banking and realise the potential of open finance and prevent the UK from falling behind the likes of Australia and South Korea.
Specific reforms include removing the 90-day authentication requirements currently foisted on users of Open Banking and an element of compulsion for real-time data sharing by incumbents data holders.
By introducing a smart data right and letting Brits share more of their data, the report argues that the UK will see improved competition, innovation, better services and, according to a McKinsey report, a potential increase of 1-1.5% in GDP by 2030.
Adam Jackson, director of policy, Innovate Finance, says: "Open banking has fuelled financial innovation in the UK. As adoption spreads in other countries, going further and faster on smart data would maintain the UK as a hotbed for innovation.
"A Smart Data Right, as called for in this letter and Coadec's report, would be the best next step, maximising the possibilities of a Smart Data economy and putting consumers in control of their data.”
Read the report