➡️ The Data (Use & Access) Act 2025 marks a transformative step for the UK payments sector, introducing a modernised data-sharing framework with direct implications concerning fraud detection, AML, and onboarding.
➡️ By expanding smart data access beyond Open Banking, the Act enables real-time, automated sharing of financial data based on recognised legitimate interests, facilitating new tools for risk scoring and fraud prevention.
➡️ It establishes standardised Application Programming Interfaces and governance under Smart Data schemes, backed by reforms to the UK GDPR to support automated decision making and cross-border flows.
➡️ The Act also lays the legal foundation for a national digital identity system, which could streamline Know Your Customer and reduce AML compliance costs from 2026 onward.
✅ As the act further drives innovation across the payments landscape, firms should review the legislation to assess how the legislation can enhance data access and improve financial crime controls.