The Financial Conduct Authority has set out plans to expand the use of open finance in the UK, with proposals that would give businesses greater access to consumers’ financial data.

The regulator said a priority area will be improving access to finance for small and medium-sized enterprises. It will also examine how broader data sharing could affect lending decisions and the speed of loan applications.

The watchdog said it will work with industry, consumer groups and other regulators over the coming year to identify and assess practical use cases, using its Smart Data Accelerator and a taskforce focused on evaluating proposals.

The plans come amid increased attention on data security risks across financial services. In March, a faulty software update at Lloyds Banking Group exposed the personal transactional data of nearly 450,000 customers across Lloyds, Halifax and Bank of Scotland, allowing customers to view other customers’ information, and highlighting persistent operational risks faced across the sector.

According to official UK Government statistics, phishing attacks remain the most common form of breach or attack, affecting 85% of businesses that reported a breach or attack in the 12 months to April 2025.

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