A new data bill expected to become law in Spring could draw on the success of Open Banking to unlock £27bn of “smart data” economic growth, a new report has found. 

The Tony Blair Institute and Startup Coalition have called for a “smart data revolution”, which will be made possible by the passage of the Data (Use and Access) Bill, currently in its third reading in the House of Lords. 

In a joint report, the groups said the government must use new powers derived from the bill to deploy smart data-sharing schemes across a variety of sectors, having previously just been limited to Open Banking. 

The report said finance, energy and property were among key sectors that could benefit from smart data initiatives. 

With Open Finance, the report recommended expanding data sharing to savings, investments, mortgages and pensions to enhance transparency, innovation and financial inclusion. 

Open Energy, according to the groups, could allow for smart meter and energy usage data to be accessed in efforts to reduce household costs and foster more sustainable practices. 

And for the Ministry of Housing, Communities and Local Government, an Open Property scheme would support the digitisation and simplification of the property purchasing process.  

“The government will need to act fast and smart to bring the legislative framework to life,” Alexander Iosad, director of government innovation at the Tony Blair Institute said.  

“The example of Open Banking shows that when we have the right regulation and incentives, entire new tech sectors rise very quickly, improving the consumer experience and driving economic growth.”  

Open Banking was introduced in the UK in 2017 as a scheme that allowed the sharing of banking data with authorised third parties. The introduction of Open Banking was a major factor in the recent success of British fintechs. 

“Britain is on the cusp of a smart data revolution but without concerted actions across Government, the economy will miss out on a £27bn prize,” said Charlie Mercer, policy director at Startup Coalition. 

“The potential for this to entirely upend staid industries such as the energy and house buying market is massive and the winner will be the consumer.” 

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