Open finance in Sweden

Open finance is about sharing and reusing customer data. There are both regulated and unregulated methods used today. The regulated methods are commonly used in Sweden for payment initiations to and from gambling companies, an industry that is at high risk for money laundering and terrorist financing.

The unregulated methods are used primarily as a competitive advantage and to increase sales, for example prior to switching to a new occupational pension, insurance or mortgage provider.

The European Commission has drafted a proposal on how to regulate data sharing more broadly within the financial sector. The proposal is expected to be published in the near future. To prepare for the forthcoming regulation, FI, at the request of the government, has mapped how these services are being used in Sweden and identified and analysed potential risks and opportunities associated with them.

In our analysis, we have noted a need for broader regulation in order to reduce the legal ambiguities that exist today. We have also noted that broader regulation could be positive for consumers if it leads to greater data sharing, which makes it possible for consumers to more easily compare financial products.

At the same time, there are risks associated with greater data sharing, for example that the consumer, at the time the data is shared, does not always understand what information is being shared or with which parties. This could result in an elevated integrity risk and that consumers are not aware that they are being mapped.