The needs of 'non-standard' customers could end up being excluded from the development of open finance if advisers do not respond to the FCA’s Call for Input by next month, Bluestone Mortgages has said.

Open finance is aimed at extending open banking principles to give customers more control over a wider range of their financial data, such as mortgages and consumer credit. As such, it is expected that this could revolutionise the way consumers engage with their finances, improving their access to advice and the solutions on offer, and empowering them to make better-informed financial decisions.

"To this end, open finance is set to play a crucial role in supporting non-standard borrowers - who are typically excluded from mainstream lending channels - with their financial decision-making in the future," Bluestone Mortgages said.

"Ensuring that open finance develops in the best interests of consumers is of even greater importance given the number of borrowers who could emerge from the COVID-19 crisis in a more precarious financial position than they were before. It is likely that segments of underserved customers, such as those with adverse credit, will grow following the pandemic and will require additional support from brokers and lenders when it comes to accessing the relevant advice and securing lending."

Bluestone is therefore urging brokers across the mortgage market to respond to the FCA’s Call for Input on open finance, which will examine what is needed to ensure open finance develops in the best interests of consumers. The Call for Input closes on Thursday 1st October.

Steve Seal, managing director at Bluestone Mortgages, commented: “Technology has been revolutionary in supporting consumers with their financial decisions, however, more needs to be done if non-standard customers are to benefit – numbers of which are expected to increase post-COVID-19. This is why it is crucial that the future development of open finance focuses on the needs and interests of underserved customers, so that more can gain control over their financial decisions and engage with a wider variety of products and advice options in the future.

“As such, brokers have a responsibility to engage with the regulator’s Call for Input on behalf of all consumers, not just those in the financial mainstream. Any move to help borrowers understand the financial options available to them is a good thing, and ensuring the interests of “non-standard” consumers are placed at the forefront of open finance’s development will go a long way towards improving financial inclusion in the UK.”

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