A coalition of UK fintechs has signed an open letter calling on the government to accelerate a âsmart data rightâ that allows consumers to control their data and unlock the potential of open finance.
The letter, organized by the advocacy group Coalition for a Digital Economy (Coadec) and signed by a number of challenger banks, data aggregators, personal finance providers, and payment companies, calls for a smart data right into the Queen’s next year . speech is recorded.
The UK is leading the world in adopting an open banking regime. Almost four million Britons have used open banking solutions in the past three years.
However, a report accompanying the letter warns that government intervention is needed to move beyond open banking and recognize the potential of open finance and prevent the UK from falling behind Australia and South Korea.
Specific reforms include the elimination of the 90-day authentication requirements currently imposed on Open Banking users and a compulsory real-time data release by incumbent data owners.
By introducing a smart data right and allowing the UK to share more data, the report argues that the UK will see improved competition, innovation, better services and, according to a McKinsey report, a potential increase in GDP of 1-1, 5% will experience by 2030.
Adam Jackson, Director of Policy, Innovate Finance, said, âOpen banking has driven financial innovation in the UK. As adoption spreads in other countries, further and faster use of smart data would keep the UK as a hotbed for innovation.
“A right to smart data, as called for in this letter and Coadec’s report, would be the best next step to maximize the possibilities of a smart data economy and give consumers control over their data.”
Read the report