Raidiam and the University of Oxford’s Saïd Business School have launched a research programme commissioned by the Financial Conduct Authority’s Smart Data Accelerator to evaluate infrastructure options for open finance in the UK. The initiative will design and compare alternative technology and governance models that could underpin the country’s future open finance and smart data regime.
The research will be led independently by Professor Pınar Özcan, Director of the Oxford Future of Finance and Technology Initiative, and Researcher Kyeyoung Shin. The programme will produce architectural models for testing in the FCA Innovation Department’s Digital Sandbox using synthetic datasets, according to the announcement.
Transition Beyond Open Banking
Open finance represents the next evolution after open banking, extending regulated data sharing beyond current accounts and payments to other financial products. With customer consent at its core, the framework allows consumers to share their financial data across a broader range of services.
Additionally, the UK debate has expanded to include smart data, which applies similar principles to other sectors where consumers and small firms generate data that can be shared under defined rules. This broader approach aims to unlock benefits across multiple industries beyond traditional financial services.
Four Key Research Workstreams
The research programme will examine four critical areas shaping open finance ecosystem operations. The first workstream focuses on infrastructure and standardisation, including ecosystem rails, APIs, interoperability and resilience requirements.
The second workstream examines technology choices, including agentic AI, blockchain and distributed ledger technology, and quantum readiness. Meanwhile, the third covers trust and consent frameworks, addressing consumer control, ethical data use and data assurance mechanisms.
The fourth workstream addresses governance and liability frameworks, tackling questions about responsibility and accountability. These infrastructure design choices have emerged as central concerns for policymakers and market participants considering the transition from open banking to broader data sharing arrangements.
Testing Infrastructure Models for Open Finance
The programme is expected to develop multiple architectural models, including centrally coordinated models, federated interoperability models and hybrid approaches. Each model will outline technical components that can be simulated in the FCA Digital Sandbox environment.
However, the work extends beyond conceptual designs. The research will also identify integration considerations, operational dependencies and testing parameters to ensure practical implementation feasibility.
Raidiam will provide technical input based on its experience with regulated data-sharing ecosystems, with John Heaton-Armstrong leading the team translating conceptual designs into blueprints for sandbox testing. The company serves as the FCA’s technical delivery partner for Smart Data Sprints and operates open data initiatives in markets including Australia, Brazil and the UAE, processing more than 12 billion API calls monthly.
Market Impact and International Perspective
Barry O’Donohoe, Chief Executive and Co-Founder of Raidiam, emphasized the long-term significance of infrastructure decisions. “As the UK considers the evolution from open banking to broader open finance and smart data regimes, infrastructure choices will shape market participation, resilience and consumer protection for years to come,” he said.
In contrast to purely theoretical approaches, the programme aims to combine international benchmarking with stakeholder engagement. Professor Pınar Özcan noted that the UK stands at a pivotal moment in open finance development, with the research designed to provide evidence-based options for experimentation and future policy development.
Identity frameworks, accreditation models, trust anchors, consent representation and standards governance can influence who participates in the ecosystem, how risk is monitored and how responsibility is assigned when problems occur. These considerations will inform the architectural models developed through the research.
The research programme will run until the end of March 2026, with a final report expected at the conclusion of that month. The findings will inform the FCA’s approach to developing the UK’s open finance infrastructure, though specific policy decisions following the report’s delivery have not been confirmed.
