How FundingSearch Can Support the FCA Vision for SME Lending and Open Finance

Introduction: Who This Article Is For and Why It Matters

This article is for lenders, brokers, advisers, and SMEs interested in the FCA's open finance vision for SME lending. Understanding the FCA's direction is crucial for navigating the evolving SME finance landscape. The FCA vision for SME lending and open finance is shaping the future of business funding in the UK, with significant implications for how finance is accessed, delivered, and regulated.

Open finance refers to a set of principles and technologies that enable customers to control their financial data, ensure security, and promote interoperability between financial services. The FCA has prioritized SME lending and mortgages as key areas for open finance, recognizing their importance to the UK economy and the need for innovation in these sectors.

In April 2026, the FCA published its open finance roadmap, setting out a timeline to unlock open finance by 2030. This roadmap aims to make SME finance more efficient, transparent, and accessible through portable, standardized financial data, stronger APIs, digital identity checks, and AI-driven analysis. For lenders, brokers, advisers, and SMEs, understanding this direction is central to improving access to commercial finance now and building a more efficient, innovative SME finance ecosystem over the rest of the decade.

Background: FCA Priorities and Timeline for Open Finance

The FCA has made SME lending and mortgages a regulatory priority for open finance, as highlighted in its 2026 action plan. On 14 April 2026, the FCA published its open finance roadmap, which outlines the steps needed to unlock open finance by 2030. This roadmap sets policy direction, defines the future framework, and helps establish standards for data sharing, security, and interoperability. The goal is to enable SMEs to benefit from improved access to finance, faster decisions, and greater competition among lenders.

The FCA Vision for SME Lending and Open Finance

The FCA’s vision for SME lending and open finance is built on several key principles and objectives:

• Prioritization of SME Lending: The FCA has identified SME lending and mortgages as priority areas for open finance, recognizing their critical role in supporting economic growth and financial resilience for small businesses.
• Open Finance Roadmap and Timeline: The FCA published its open finance roadmap on 14 April 2026, with a target to unlock open finance by 2030. This roadmap provides a clear timeline and sets out the steps required for implementation.
• Benefits for SME Lending: Open finance can improve SME access to lending by enabling lenders to access a holistic, real-time view of an SME's financial health. Real-time data can enhance creditworthiness assessments, reduce rejection rates, and allow for faster, more accurate lending decisions. Open finance also enhances competition by making it easier for SMEs to switch lenders and access better terms.
• Open Finance Principles: The core principles of open finance include customer control over data, robust security, and interoperability between financial services. These principles aim to lower barriers for new market entrants and foster innovation across the sector.
• Implementation Challenges: Despite the potential benefits, there are challenges to implementing open finance. Consumer data-sharing concerns, fragmented regulatory oversight, and technical barriers such as latency and lack of shared infrastructure can hinder progress. Addressing these challenges will require collaboration between regulators, industry, and technology providers.
• SME Financial Resilience: Open finance can also support SME financial resilience by providing better cash flow management tools and enabling more proactive interventions when businesses face financial difficulties.

With this regulatory vision in mind, the following sections will explore the current regulatory consensus, FundingSearch’s contributions, and how these align with the FCA’s goals for SME lending and open finance.

The Regulatory Consensus: Verified Data, Intelligent Matching, Streamlined Access

Two major regulatory reports published in 2025 have confirmed what commercial finance brokers have known for years: the system is broken. More importantly, they've outlined exactly how to fix it.

The FCA's Open Finance Sprint 2025 Outcomes Report brought together over 110 stakeholders in March 2025. Their conclusion was unequivocal. Future SME lending must be built on "available, portable, and standardised" data. It must leverage "AI-driven analysis, agentic AI, and strong digital identity verification solutions". It must deliver "real-time insights and proactive services" supported by "enhanced common APIs standards".

The CFIT report Smart Data: Improving SME Lending to Drive Economic Growth went further. It quantified the problem. Bank lending to SMEs has fallen 20% in real terms since 2014. Over 50% of declined applicants never seek alternative lenders. Brokers waste 20+ hours per deal on manual lender research.

Both reports arrive at the same solutions: verified financial data from accounting software providers, digital integration with HMRC and Companies House, intelligent matching platforms that reduce friction, and standardized APIs that enable automation.

As someone who has spent a decade as a commercial finance broker, these challenges aren't theoretical to me, and they mirror the gap between mortgage tech and commercial finance broker software to rival mortgage advisers. They're problems I've tackled with every deal. This experience has informed how we've built FundingSearch to contribute to the solutions regulators have identified.

With these regulatory priorities in mind, let's examine how FundingSearch is contributing to the innovation agenda.

Key Regulatory Evidence Summary

FCA Open Finance Sprint 2025 Outcomes Report (July 2025)

• 110+ stakeholders identified verified data, AI-driven matching, and digital identity as essential
• SME Finance TechSprint scheduled for second half of 2025 to test implementation
• Vision 2030 requires "available, portable, and standardised" data with "enhanced common APIs"
• Smart Data Accelerator launching to test high-impact use cases
• Source: https://www.fca.org.uk/publication/corporate/open-finance-sprint-outcomes-report-2025.pdf

CFIT SME Finance Taskforce Report (August 2024)

• Bank lending to SMEs down 20% in real terms (£10bn) since 2014
• 50%+ of declined applicants never seek alternative lenders
• Brokers spend 20+ hours per deal on manual lender research
• Priority data sources: cloud accounting, HMRC, Companies House, verified identity
• 7-point action plan emphasizing smart data, verification, and reduced friction
• Source: https://cfit.org.uk/wp-content/uploads/2024/08/CFIT-SME-Finance-Taskforce-Smart-Data-Unlock-SME-Lending-Aug-2024.pdf

FundingSearch: Contributing to the Regulatory Innovation Agenda

I built FundingSearch as a UK fintech platform because I experienced these inefficiencies first-hand. Every deal meant manually researching hundreds of lenders. Every application required compiling data packs from fragmented sources. Every declined client represented a missed opportunity, knowing better options existed somewhere in the market.

The FCA's Vision 2030 describes five foundational pillars. Our work at FundingSearch explores how technology can support each one.

Verified Financial Data in Open Finance

The CFIT report identifies access to cloud accounting data as critical for unlocking SME finance. Lenders need "up-to-date financial information held in cloud accounting software by providers such as Sage, Xero, Intuit QuickBooks".

Our approach integrates directly with Xero and Sage. Live P&L, balance sheet, and cash flow data can pull automatically. Within a broader Open Finance model, key data sets can also extend beyond accounting data to savings and investments, and open banking access to real-time bank transaction data will be central to that shift. This reduces reliance on PDFs and manual data entry. It's our contribution to what the FCA envisions when describing "secure and reusable digital IDs, digital wallets and machine-learning models capable of assessing both traditional and non-traditional financial signals".

The CFIT report found that traditional lenders using proprietary data consistently outperform newer lenders lacking this access. Our platform aims to help level this playing field by providing verified data to brokers and their lender panels.

Intelligent Lender Matching

The FCA sprint highlighted "AI-driven tools fed by data shared securely using open finance could support consumers in navigating complex decisions". The CFIT report revealed that 50% of declined SMEs never approach alternative lenders.

Our commercial finance broker software matching algorithm generates ranked lists of suitable lenders from business profile data. Match probability scores include reasoning, and better data sharing can support fairer pricing for SME loans using behavior-based risk profiles while helping lenders assess loan applications more consistently. Improved comparability and matching may also increase pricing pressure in SME lending. This addresses the problem both regulators identify - SMEs lack understanding of the finance market, and brokers need more efficient research tools.

We're working to reduce research time significantly, targeting the efficiency gains the CFIT report highlights as necessary for the industry, by providing commercial lending software that automates origination workflows.

Digital Identity Verification

Both reports emphasize digital identity as "a critical enabler, facilitator or catalyst of open finance". The FCA describes "secure, streamlined access to services" through verified credentials.

Our Companies House auto-lookup feature provides business verification. Directors are confirmed. Company structure is validated. This helps address what the CFIT report identifies as a major friction point - Companies House data currently exists in "PDF format which is difficult to absorb digitally" with "lack of standardisation in naming conventions".

We're exploring how technology can improve this verification process whilst we await broader Companies House reforms.

Streamlined Applications and Data Portability in Smart Data Schemes

The CFIT report calls for "technical standards that fit alongside the data" and "conformance services to ensure quality implementation". Scalable Open Finance also depends on consent-based data sharing and strong data protection, not just technical standards. The FCA envisions "standardised, high-quality data through shared infrastructure" with consumer protection alongside those foundations.

Our master application architecture allows SMEs to input data once, with smart field mapping distributing information to multiple lender forms. This approach aims to reduce application completion time significantly, working towards the "modular consent and personalisation layers built on shared infrastructure" the FCA describes. It also supports reusable data packages, so SMEs can submit validated information once and reuse it across lender applications. But consumer data-sharing concerns and technical barriers such as latency and a lack of shared infrastructure can slow implementation.

As industry standards evolve, we're committed to ensuring our platform aligns with emerging best practices, and any robust framework for Open Finance will need granular consent controls as standards develop.

Comprehensive Financial Services Product Coverage

The FCA sprint identified SME finance as requiring diverse datasets. The CFIT report notes that different finance types need different data. Asset finance needs asset registers. Invoice finance needs invoice data. Working capital needs cash flow projections.

Our platform covers the full commercial finance spectrum - asset finance, invoice finance, working capital, trade finance, merchant cash advance, and property finance. Each product type aims to connect with relevant verified data sources as they become available through regulatory initiatives.

We're learning what data combinations work best for different lending scenarios, insights we'll share through the FCA's TechSprint process.

With these platform features, FundingSearch is actively supporting the FCA vision for SME lending and open finance. Next, we look at how our progress aligns with available data infrastructure and regulatory recommendations.

Working with Available Data Infrastructure

Both regulatory reports identify specific data sources as essential. We've mapped our current development against their recommendations to understand where technology can contribute today and where regulatory reform is needed.

With a clear understanding of the data landscape, let's explore why industry innovation and consumer duty are so important for closing the SME funding gap.

Why Industry Innovation and Consumer Duty Matter: The £10 Billion Challenge

The CFIT report quantifies the urgency. Bank lending to SMEs in 2024 sits £10 billion below 2014 levels in real terms. This represents missing jobs, missing innovation, missing growth.

The FCA identifies four opportunity areas where open finance can transform consumer outcomes. Its early priorities include SME lending and mortgages. Financial wellbeing. Financial growth. Financial resilience. Digital identity. Our work at FundingSearch explores practical applications in each area.

Financial Wellbeing

Technology can help flag risks before they arise. Brokers can see cash flow gaps early. SMEs can receive options based on verified affordability.

Financial Growth

Intelligent matching can surface growth opportunities. SMEs can discover lenders they never knew existed. Brokers can access specialist products more efficiently.

Financial Resilience

Real-time data can enable faster interventions. When cash flow tightens, alternative funding options can appear more quickly. Richer data may also help firms in financial difficulty improve debt management. The 50% who currently give up after one decline might find new paths forward.

Digital Identity

Companies House integration and accounting software verification can create more trusted business profiles. These could become portable across lenders, working towards the "single, verified identity across platforms" the FCA describes.

These opportunities require collaboration between technology providers, regulators, lenders, and brokers. No single platform solves everything, but each contribution moves the industry forward. That is how open finance can deliver significant benefits across financial services when those priority use cases are implemented well.

With these opportunity areas in mind, let's look at how FundingSearch is participating in the FCA's SME Finance TechSprint to help drive innovation.

The FCA's SME Finance TechSprint: Contributing to Innovation

FundingSearch is participating in the FCA's SME Finance TechSprint this month. This initiative sits within the Smart Data Accelerator programme. Its purpose is testing high-impact use cases, enabling agile policy development, and identifying suitable data and technology infrastructure needs. The FCA is expected to use this work to inform a discussion paper on the first scheme in Q4 2026.

We're participating to contribute our practical experience operating a commercial finance lending platform for SME deal origination to the regulatory innovation process. As a broker-built platform, we understand the real-world challenges from both sides of the market. We're eager to learn from other participating firms and help shape the future framework by showing the FCA what works, what doesn't, and where regulatory support is most needed.

The FCA's sprint outcomes report describes testing as moving "from ideation to implementation". We hope our participation can provide useful insights on this journey. Our experiences with data integration, broker workflows, and lender requirements might help inform the practical policy development the FCA is undertaking.

More importantly, we're keen to learn from the wider ecosystem. Other TechSprint participants will bring different perspectives, different technologies, and different approaches. This collective learning is how the industry moves forward together.

The CFIT report delivers seven immediate action points for unlocking SME finance. Technology platforms like FundingSearch can contribute to six of them in practical ways:

1. Prioritise the Digital Information and Smart Data Bill
   • Our platform architecture is designed for smart data integration. Our APIs can work with cross-sector data sharing. Our consent frameworks aim to align with emerging standards. We're ready to adapt as new regulations emerge.
2. Fund and support an SME "Smart Data Challenge"
   • Our experience testing these technologies in a real broker environment provides useful data points. We can demonstrate what works in practice, what challenges emerge, and where more development is needed.
3. Review and improve Bank Referral and Commercial Credit Data Sharing schemes
   • Our marketplace approach offers one model for how improved referrals might work. We don't claim it's the only answer, but hope our experience can inform the review process.
4. Accelerate Companies House reform
   • We've built verification workflows that work with current data. When Companies House standardises director names and provides better API access, we're ready to integrate these improvements quickly.
5. Unlock HMRC data access
   • Our accounting software integration creates one potential bridge. When HMRC opens digital VAT receipts, platforms like ours can help verify this data against accounting records, supporting the validation lenders need.
6. Enable greater trust in specialist lenders
   • Our platform aims to help brokers vet lenders whilst maintaining independence. We don't force AR networks or commission splits. This preserves broker discretion whilst improving access to verified lenders.

Each of these contributions is part of a broader industry effort. No single platform provides all the answers, but collective innovation moves us closer to the vision both regulatory reports describe. Early engagement matters because the first scheme will influence the wider regulatory framework for open finance.

With our TechSprint participation underway, let's examine how FundingSearch supports broker independence in line with regulatory expectations.

Supporting Broker Independence

Both regulatory reports emphasise sustainable commercial models. The FCA describes "aligned incentives, flexible revenue-sharing arrangements and value distributed across all actors in the ecosystem". The CFIT report warns against models that reduce competition.

Our approach preserves broker independence. We don't require AR network membership. We don't split commissions. We don't force exclusive lender relationships.

Brokers maintain their existing lender connections. They keep full commission structures. They gain efficiency tools without sacrificing autonomy.

This model aims to align with the FCA's vision of "interoperability and cross-sector collaboration to create a cohesive and organic financial ecosystem". It works towards what the CFIT report identifies as essential - reduced friction without consolidated control.

Whether this proves to be the right model will emerge through market testing. We're committed to adapting based on broker feedback and regulatory guidance.

With broker independence at the core, let's look at how FundingSearch's regional roots support the FCA's vision for a nationwide SME finance ecosystem.

Building Fintech Solutions from Sheffield

I built FundingSearch in Sheffield - not London, not a fintech hub, but a real city where real businesses face real financing challenges, and our press kit outlines that mission and growth story.

The CFIT report notes that SMEs employ 16.7 million people across the UK. They generate over half of UK business turnover. Their success matters to communities across the entire country.

The FCA's Vision 2030 describes "a sector in which finance is open, secure, intelligent and highly personalised, all powered by proactive regulation, intelligent technology and innovation". Achieving this vision requires practical tools that work for brokers and businesses everywhere, not just in financial centres.

Every SME that gives up after one decline represents an opportunity to improve. Every broker who spends 20 hours on manual research highlights where technology can help. Every lender who receives incomplete applications shows where better data infrastructure is needed.

These aren't just statistics. They're the daily reality that informed how we built our platform.

With this local perspective, we remain committed to continuous improvement and collaboration as the regulatory landscape evolves.

Looking Ahead: Collaboration and Continuous Improvement

The Financial Conduct Authority published its Open Finance Roadmap on 14 April 2026. This roadmap sets policy direction, defines the future framework, and helps establish standards. Fragmented regulatory oversight still complicates delivery of the long-term regulatory framework. It also acts as a delivery plan for the vision for open finance and the wider smart data future, intended to unlock Open Finance over time.

We're committed to aligning with these developments, and SMEs, lenders, or brokers who want to collaborate can contact the FundingSearch team. Our technology can adapt to new requirements. Our data integrations can expand as new sources become available. Our broker community provides ongoing feedback on what works in practice.

The CFIT report concludes with urgency: "There is no time to waste." We agree. That's why we're actively participating in the FCA's innovation agenda whilst continuing to develop practical tools that help brokers today.

The commercial finance industry needs both regulatory reform and technology innovation. We need government to unlock HMRC data. We need Companies House to standardise verification. Banking and financial services occupy a central place in the wider Smart Data Strategy. Open Finance is central to developing smart data schemes and new smart data schemes across Financial Services, with clear potential benefits for small and medium sized enterprises. Collaboration through the Digital Regulation Cooperation Forum also matters for cross-sector development of interoperable smart data schemes. We need industry collaboration on smart data schemes.

Technology platforms like FundingSearch can contribute to this transformation, but we're one piece of a larger puzzle. The real progress comes from regulators, lenders, data providers, brokers, and technology companies working together.

What's needed isn't just capability. It's sustained collaboration.

Open finance services are expected to launch by 2029/2030 as the regulatory framework matures.

We're ready to contribute our part.

FundingSearch's Contribution to the FCA Vision: Feature Alignment Table

We're contributing our practical experience to help shape industry innovation whilst learning from regulators, lenders, and fellow technology providers.