UK’s Financial Services Growth Strategy and open finance reforms

The UK government has unveiled its Financial Services Growth Strategy alongside a package of regulatory reforms aimed at strengthening the country’s position as a global hub for banking, investment, and fintech. The measures, introduced in Leeds under what officials are calling the 2025 Leeds Reform Package, place a strong emphasis on open finance, cross-border market access, and improved competitiveness for domestic firms.

A central feature of the strategy is a new open finance framework that expands on the country’s existing open banking system. The reforms will require banks, insurers, pension providers, and investment platforms to share a wider range of customer-permissioned data through standardized APIs. Proponents say the rules will give consumers greater control over their financial information and encourage innovation by making it easier for fintech companies to develop tailored services.

The government also confirmed a new financial cooperation agreement with Switzerland under the Berne Accord. This will provide mutual market access for a range of financial products, including asset management services and certain investment instruments. Officials believe the agreement will give UK-based firms a competitive advantage in Europe while reinforcing London’s role as a bridge between European and global markets.

Another key element of the growth strategy is regulatory streamlining. The Financial Conduct Authority and Prudential Regulation Authority will be tasked with reducing approval times for new financial products and licenses. The aim is to make the UK more attractive to fast-growing companies that might otherwise launch in markets with lighter regulatory processes. At the same time, the government stressed that consumer protections will remain a priority, with new oversight mechanisms for digital finance products and stronger anti-fraud measures.

The reforms also include incentives for capital markets. Proposed changes to listing rules are designed to make it easier for high-growth companies to go public on UK exchanges. The government plans to offer tax incentives for investments in early-stage fintechs and is exploring ways to channel pension fund capital into innovative financial services businesses.

Industry reaction has been broadly positive. Banks and fintechs welcomed the open finance measures as a natural progression from open banking, while investment managers expressed optimism about the potential to expand services into Switzerland. Some consumer advocates have cautioned that data-sharing must be accompanied by robust privacy safeguards and clear consent protocols to prevent misuse.

Officials say the strategy is intended to address both immediate challenges and long-term trends. With global competition for financial services investment increasing, policymakers believe that maintaining an agile regulatory environment is essential. They also see open finance as a way to deliver tangible benefits to households and small businesses, from more competitive loan rates to personalized financial advice delivered through digital platforms.

The reforms will be phased in over the next two years, with the open finance framework expected to take effect in mid-2026. If the measures deliver as planned, they could help the UK solidify its standing in an increasingly digital and internationally connected financial system.