UK Finance, which represents 300 firms in the banking and financial services industry, has called on HM Treasury to invest in data sharing schemes as part of its Spending Review 2025.

The trade association says that while Open Banking in the UK has demonstrated the transformative potential of secure data-sharing frameworks, there are still barriers to the roll out of a 'smart data' economy.

The organisation expressed concerns about fragmented public datasets; inconsistent data standards; the absence of a sustainable commercial framework for data sharing in Open Banking; and "low public awareness" of the benefits of secure data sharing.

"We believe the benefits of private sector data-sharing for consumers and businesses would be substantially increased by providing greater access to appropriate non-financial public datasets," wrote UK Finance as part of submitted recommendations to the Spending Review.

It gave the Centre for Finance, Innovation and Technology’s (CFIT) Open Finance Blueprint as an example of good practice, explaining that it identified "significant opportunities" through data sharing by using HMRC and Companies House data to boost SME lending and extend debt advice for vulnerable customers.

It also said that the government's proposed National Data Library, which aims to consolidate and standardise public data access, has the potential to drive smart data innovation and build on the benefits already delivered through Open Banking.

To address the UK's data sharing issues, UK Finance urged the government to support the implementation of data sharing schemes under the Data (Use and Access) Bill and to unlock public datasets, including through the new National Data Library.

It added that to "maximise the private sector innovation" that is unlocked through public
spending devoted to creating the National Data Library, it must be developed in a way that
is compatible with the provisions of the Data (Use and Access) Bill.

The trade association also said that the government should provide the conditions in which firms can take up the opportunities offered by AI and quantum technology.

"Investment in these areas is imperative to ensure that the UK economy, and its financial sector, remains at the cutting edge of technology and is able to harness the growth benefits," it added.

The trade association urged the government to honour the recommendation in the AI Action Plan for a 10-year investment commitment in order to "reinforce the UK’s position as a global leader in AI and ensure the UK harnesses the growth benefits of this technology."

FStech has approached HM Treasury for comment on the recommendations.

HM Treasury's Spending Review 2025 is taking place in two phases, the first of which was outlined in chancellor Rachel Reeves' Autumn Budget, which confirmed departmental budgets for 2024-2025 and set budgets for 2025-2026.

The second phase, which will conclude and be published in late spring, delivers the government's missions. As part of this, departments will be expected to make better use of technology and seek to reform public services, to support delivery of the government’s plans for a "decade of national renewal."

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