A business alliance spearheaded by John Penrose, MP for Weston-Super-Mare, is urging the government to expedite Smart Data reforms, to bolster competitiveness of British exporters, stimulate investment in UK digital jobs, and offer better bargains for consumers to reduce the cost of living.
Penrose has thrown his weight behind measures to enhance Britain’s world-leading digital success in open banking to be extended as quickly as possible to industries beyond financial services.
The partnership includes entities such as NatWest, TISA, the Financial Data and Technology Association, The Payments Association, Open Banking Excellence (OBE), fintech Ozone API and Icebreaker One. They have jointly written to ministers, advocating for swift implementation of previously agreed reforms to prevent British businesses from being disrupted by foreign competitors.
The proposed reforms in the Data Protection and Digital Information (No.2) Bill includes provisions to introduce Smart Data reforms, but no specific timelines have been provided for their enactment in various business sectors.
UK business leaders say they need confidence to initiate investment programmes immediately, and modern digital enterprises must move much, much faster than traditional customary speed.
The MP for Weston-Super-Mare, in acknowledging the global success of open banking in the UK, cautioned that competitors in other nations will not stand still. So, to stay ahead businesses must replicate their success across the various sectors of the economy to provide better prices and develop world-leading enterprises in industries like online retailing and energy.
Helen Child, Founder of Open Banking Excellence (OBE), in an interview, emphasised the importance of data sharing as the foundation of open banking. According to her, this data can be used by lenders to undertake accurate real-time affordability assessments and make more educated decisions, allowing previously excluded customers to demonstrate their trustworthiness.
She pointed out the role of open banking in personal financial management tools, enabling customers to have a comprehensive view of their accounts and make better financial decisions.
Child said that by accelerating the global expansion of open banking, the company can make an actual change during the cost of living crisis by addressing the challenge of financial inclusion.
