Banking and Finance Among Focus Areas in UK’s Smart Data Roadmap
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The UK government has revealed its Smart Data Roadmap, rolling out strategic plans for smart data initiatives across seven areas.
In order to implement these plans, the government will derive its authorization from the Data Protection and Digital Information Bill, which is currently undergoing the committee stage in the House of Lords. The roadmap looks at seven sectors, including telecoms, transport, home-buying, retail, finance, and banking.
The Group Aims To Provide A Long-Term Structure For Open Banking Initiatives
The UK Minister of State for Enterprise, Markets, and Small Business, Kevin Hollinrake, commented on the development. He highlighted the significant impact of the data economy, as it contributes to the large and rising data part of the economy.
He emphasizes the potential of Smart Data, as it unlocks data currently held and underutilized by businesses and individuals in a small number of firms.
Within finance and banking, the roadmap emphasizes that the Treasury will utilize its Smart Data powers to establish a long-term regulatory framework for Open Banking by outlining secondary regulations.
The report also highlights its commitment to considering the recommendations from the Centre for Finance, Innovation and Technology (CFIT) in its latest update.
This report came in after the UK government’s Economic Secretary to the Treasury, Bim Ofolami, announced the creation of an open finance task force. Among the recommendations from CFIT’s report, this announcement attracted a lot of audience.
Smart Data offers businesses seamless access, with users’ consent. It grants novel services that promote economic growth and competitive outcomes, productivity, and investment.
The Schemes Aim To Extend The Economic Benefits Of Open Banking
Smart Data involves securely sharing client data with authorized third-party providers (TPPs), regarding the client’s demand. These providers utilize the data to offer innovative services, such as automatic switching or enhanced account management for their customers.
The smart data working group was established primarily to bring innovation to the systems. The group also leverages smart data technology to reduce duplication and exploit the usage of these schemes across diverse sectors.
The group is also positioned to support the new and innovative scheme while delivering time, cost, and effort-saving services for small businesses and consumers. The goal is to increase competition in relevant sectors.
The Chief Executive Officer of Open Banking, Henk van Hulle, highlights the benefits of developing novel smart data schemes.
With this scheme, the open banking system receives economic benefits along with other unique sectors, like telecoms, home-buying, transport, retail, and energy. There are also plans to further increase these benefits.
