Access to customer data and business data
Smart Data is the secure sharing of customer data, upon the customer’s request, with authorised third-party providers (ATPs). ATPs can typically be defined as organisations who are neither the customer nor original service provider (e.g., the bank), and are offering services to the customer.
	ATPs use the customer’s data to provide innovative services for the consumer or business, such as automatic switching and account management, for example via account aggregation. The incumbent industry (e.g., the service provider such as the bank) may also opt to innovate and offer similar services.
	The provisions in this Act on Smart Data aim to improve data portability between suppliers, service providers, customers, and relevant third parties with a view to:
Rebalancing the information asymmetry between suppliers and customers;
Enabling customers to make better use of their personal data, e.g., enabling accurate tariff comparisons and providing access to better deals;
Enabling customers to benefit from a more competitive marketplace, including through lower prices and higher quality goods and service delivery; and
Providing new services in and across the sectors, such as those which may help consumers save and manage their money and services.
	Open Banking is the only active example of a regime that is comparable to a 'Smart Data scheme' – but it needs a legislative framework to put it on a permanent footing, from which it can grow and expand. In 2017, following a market investigation due to competition concerns, the CMA ordered the nine biggest banking providers in the UK to ‘open up’ the data relating to personal and business current accounts. The CMA required the nine largest banking providers to set up the Open Banking Implementation Entity to oversee the scheme. In January 2023, the CMA announced the substantial completion of the Open Banking roadmap, with focus shifting towards preparing for the transition to new arrangements for Open Banking. As of December 2024, there are over 12 million consumers and small businesses using Open Banking.