Financial services

• New Government announces Bill to bring forward Smart Data including Open Finance
• Digital ID Framework also to be recognized in statute
• techUK welcomes these important developments

During the last Parliament, the Data Protection and Digital Information (DPDI) Bill contained clauses which allowed the Financial Conduct Authority (FCA) to create a Smart Data scheme’ – Open Finance, which would mandate financial institutions to share customers data with them and approved third-parties in real-time. This mandated data sharing follows much the same principle as Open Banking, albeit applying to most, if not all other sub-sectors of Financial Services. The Bill also contained clauses to bring the Digital ID Trust Framework on to the statute books – something that not only helps for verification and KYC purposes but also allows many datasets to be linked with certainty to individuals or entities.

When the DPDI failed to make the wash-up process after Parliament was dissolved for the election, there was much disappointment as any significant delay would set the UK back in he global FinTech race.

However, the Government has today ([INSERT DATE]) announced that there will be a [INSERT NAME] Bill which will contain both of these areas – putting them on the legal footing required to ensure they will be successful.

techUK will continue to work with legislators and regulatory policy makers to represent members’ views, shape the legislation and deliver insight to the technology sector.

Responding to this announcement, techUK’s Head of Financial Services, Andy Thornley, said:

“This is really welcome news. When the Bill failed to make the wash-up process after the election was called, we were concerned there may be significant delays in delivering this work whilst ither jurisdictions, such as the EU, continues to make progress.

“Delays in delivering the legislation required to properly implement both Open Finance and Digital ID may have risked our FinTech crown; however we’re really pleased to see Government prioritising this work which will boost the sector and deliver new innovations and services for their customers.”