Open data ecosystem specialist Raidiam has teamed up with the University of Oxford's Saïd Business School to conduct research for the Financial Conduct Authority's Smart Data Accelerator, exploring potential infrastructure frameworks for the UK's open finance future.
The partnership was unveiled at the FCA's Mortgages & SME Finance TechSprint Showcase Day. The study will produce a comprehensive report analyzing various infrastructure, technology, and governance approaches that could support the UK's evolving open finance landscape.
Examining Critical Infrastructure Components
Professor Pınar Özcan, who heads Oxford's Future of Finance and Technology Initiative, is leading the independent study alongside researcher Kyeyoung Shin. Their work will assess potential models across four essential areas:
Ecosystem infrastructure and API standardization
Emerging technologies including AI agents, blockchain, and quantum computing preparedness
Consumer trust mechanisms and data consent protocols
Regulatory oversight and liability distribution
The Oxford team will conduct global comparative analysis and stakeholder consultations to develop structured architectural frameworks. Raidiam will provide technical insights from its experience building secure, regulated data-sharing platforms.
Testing Theoretical Models in Practice
John Heaton-Armstrong's team at Raidiam will help transform theoretical infrastructure concepts into practical, testable frameworks. These will be evaluated in the FCA Innovation Department's Digital Sandbox environment using simulated data.
"Infrastructure decisions made today will determine market accessibility, system stability, and consumer safeguards for decades," said Barry O'Donohoe, Raidiam's CEO and Co-Founder. "We're contributing our real-world experience from regulated ecosystems to help ensure the proposed frameworks are both technically sound and ready for rigorous testing."
Shaping Future Policy Direction
Professor Özcan noted the timing's importance: "The UK stands at a critical juncture in open finance development. Our research will evaluate different infrastructure and governance configurations, incorporating international best practices and industry input, to give the FCA evidence-based alternatives for testing and policy formulation."
The study recognizes that infrastructure design choices—from identity verification systems to standards governance—significantly impact ecosystem participation, scalability, risk management, and liability allocation.
Diverse Architectural Approaches
Researchers will develop several architectural frameworks, ranging from centralized coordination to federated interoperability and mixed models. Each framework will include technical specifications for Digital Sandbox simulation, along with integration requirements, operational dependencies, and testing protocols.
The project concludes at the end of March 2026, with final deliverables due March 31. Results will inform future FCA innovation initiatives and may guide subsequent policy decisions and industry research.
The work supports the UK government's goal of establishing global leadership in open banking and open finance, with the FCA set to release its open finance roadmap by March 2026.