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Finance is the final frontier? Uk watchdog probes, and the sharing of information

FILE PHOTO: Workers cross the road in the City of London, in the neighbourhood of the Royal Exchange and the Bank of England, London, united Kingdom, December 2, 2019. REUTERS/Toby Melville

LONDON (Reuters) – the united kingdom Financial Conduct Authority (FCA) has examined the sharing of data with external competitors, can be extended to non-bank savings, insurance, mortgages, investments, pensions, consumer credit, and to increase innovation and choice.

“Open banking” rules, and the permit from the payment of the companies, and other providers to use the information for the account, with the client’s permission to offer rival services, and has opened up the door for payment services for financial technology or “fintech” companies.

The Financial Stability Board, a global regulatory body, has said that Major Technology companies such as Google, Alibaba and Facebook should be forced to share information with financial services clients, banks and fintechs to prevent unfair competition.

Britain’s FCA said on Tuesday that it is going to go a step further with the opening of finance, it would be able to set up the “dashboard” to help consumers keep an eye on their finances, in order to encourage shopping around for better deals, and as a means of gaining financial services.

“We want to understand what is required in order to ensure access for finance is developing in the best interests of the consumer, and what is the role that we play,” he said in a statement.

The FCA said: “there have been many cases of unfair price discrimination based on many years of customers, in terms of insurance, savings and mortgage markets.

“In each of these markets, and the impact of discrimination is compounded by a lack of shopping around by consumers. Open finance is a possible solution to the long-term,” the FCA said.

The Uk’s watchdog, has opened a “call for input” up to and including March 2020, and the publication of a feedback statement, and gave examples of where information may be shared with:

Reporting by Huw Jones; Editing by Alexander Smith

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