Open finance is a radical initiative that aims to ‘open up’ more data about people’s finances. The intention behind it – to give consumers greater control over their data and the power to make better financial decisions – is welcome.

But while the open finance movement is gathering momentum, we do not yet know much about the impacts on people. This paper explains how open finance could exacerbate the risks that finance currently poses for people, especially those in vulnerable circumstances. Such risks include:

1. A reduction in the control people hold over data about them
2. Greater financial exclusion
3. Careless automation
4. The rising power of platform monopolies.

On the other hand, open finance could present opportunities to identify unmet needs.

Published in July 2021 by the Finance Innovation Lab.