Smart Data Group (SDG) has issued a rallying call to the UK’s open banking ecosystem, urging stakeholders to back an independent, industry-led approach for the sector’s next phase.
Following the Financial Conduct Authority’s (FCA) call for industry submissions, SDG is advocating for a model it claims will reduce costs, restore momentum, and lay the foundations for Open Finance.
A new ‘Future Entity’
The debate centres on the design of the “Future Entity” that will oversee open banking under the UK’s Long-Term Regulatory Framework.
Developed through consultation with banks, fintechs, and consumer groups, SDG’s proposal advocates for a clear separation of roles. This includes industry-led design and mobilisation, alongside a “genuinely independent” Future Entity capable of operating in the interests of the entire ecosystem.
The group argues its model is deliberately lean, with analysis suggesting core functions can be delivered at a “significantly lower cost” than historic arrangements while maintaining neutrality and resilience.
Paul Scully, chair of Smart Data Group’s Advisory Board, commented: “Open Banking has delivered meaningful benefits, but the next phase must be built for what comes next, not constrained by legacy structures. Our approach is about securing independence, pace, and confidence, while creating a platform that can evolve into Open Finance and support the UK’s wider Smart Data ambitions.”
Avoiding legacy constraints
The proposal has garnered support from various quarters of the industry, including those outside traditional representative structures who fear a future body could be dominated by specific interests.
Vinay Jayaram, founder and CEO of Envizage, said: “The next phase of Open Banking requires a genuinely fresh start. The Future Entity must be independent, neutral, and able to act in the interests of the whole ecosystem, rather than being shaped by legacy incentives or dominated by any single group.”
Jayaram added that SDG’s emphasis on “balanced governance” offered the most credible route to unlocking the full potential of the sector.