The FCA has identified SME lending as a priority use case for open finance, alongside work on digital verification that could reduce duplicated customer checks while preserving financial-crime controls. Although the initiative is focused on business finance, its direction of travel is relevant to mortgage and protection firms serving self-employed clients, sole traders and landlords.
More portable and permissioned financial data could improve evidence gathering, cash-flow assessment and the speed of specialist lending applications. It may be particularly useful where income is variable, records are spread across several accounts, or clients face repeated requests for the same information. The FCA also stresses that complex applications and limited awareness remain practical barriers for smaller firms.
For adviser businesses, the AI implication is not simply faster data extraction. Firms need robust consent processes, data-minimisation policies, cyber controls and human review of AI-generated insights. Open-finance tools should improve understanding and customer outcomes—not become a substitute for explaining lending risk, affordability or the limits of a product.