Consumer Protection for Open Finance Ecosystems

Open banking and open finance can bring important benefits for consumers and financial sector innovation. However, like all financial innovations, open finance brings risks which need to be identified and address. In particular, the wide range of financial and non-financial institutions serving consumers and handling their data in open finance ecosystems requires robust market conduct and consumer protection supervision.

This report identifies several emerging risks related to open finance, and proposes ways in which these risks can be measured, monitored, and mitigated against by leveraging the data available in open finance ecosystems. The report begins by discussing the primary consumer protection concerns in open finance, and then proposes several methods and data sources for monitoring consumer protection and market conduct in open finance, before concluding with a call to action for policy markets to implement consumer protection policies for open finance early on in their journey.