Transcript: The FCA's Open Finance and AI update

Transcript

Hugo Rousseau: The FCA published its Open Finance roadmap on 14 April 2026, setting out how it intends to move open finance from vision and design to delivery by 2030. This is an important milestone because it gives all stakeholders a clearer sense of the sequencing as well as the regulator's ambitions for Open Finance. The FCA will be working on extending secure consent-based data sharing beyond Open Banking into wider financial services. So, looking at SME lending, mortgages but also later on pensions, investment, insurance, credit and debt management products. So, a broad scope of products and data-sets. In terms of benefits, it could be around personalised products, easier switching, inclusion and stronger competition.

The roadmap has three phases. In 2026, the FCA will be focused on prioritising the highest impact use cases, so potentially SME lending and mortgages. In 2027, the focus moves to framework design and then from 2028 the FCA expects Open Finance schemes to be developed, tested, consulted on and launched. These developments sit within the Government's wider Smart Data agenda, so this is likely to connect to, and be impacted by other sectors over time.

Open Finance will also be linked to the Open banking transition, where the future entity and new legislative powers will be important for moving the ecosystem onto a more sustainable footing.

Jessica Rusu, Chief Data, Information and Intelligence Officer, made clear in a speech on 21 April 2026 that the FCA is not planning to introduce AI specific rules, instead it is applying the existing frameworks while building its own understanding and capabilities.

Three developments stand out for firms.

First, the FCA has selected the second cohort for AI Live Testing, allowing firms to engage with the regulators while deploying AI for innovative use cases.

Second, the Supercharged Sandbox has reopened for second cohort on 5 May 2026, giving firm’s access to more computer power on data-sets to test more AI use cases.

Third, the FCA plan to publish examples of good and poor practice based on its engagement with firms by the end of the year.

The FCA is also looking at the implications of more advanced AI for consumers, retail markets and regulators, with Sheldon Mills, Executive Director, expected to report to the FCA Board in the summer.

This is linked closely to Open Finance. More data sharing creates more opportunities for AI, but also heightens the need to manage explainability, bias, third party risk, and cyber and consumer outcomes.