What the research looked at 

Commissioned by the Department for Business and Trade, this research set out to understand how Smart Data schemes should be governed as they expand beyond Open Banking into new sectors. 

The study focused on eight priority sectors: payment accounts, finance, retail energy, telecommunications, property, transport, retail and agrifood. Drawing on over 100 stakeholder interviews, focus groups and a review of UK and international best practice, we identified the full range of governance functions needed to run effective Smart Data schemes – from setting standards and accrediting third parties, to handling complaints and enforcing compliance. 

What we found 

Our research identified 32 distinct governance functions that need to be performed to make Smart Data work in practice. We then tested different ways these functions could be organised and delivered, assessing the strengths and weaknesses of three potential governance models. 

The key finding is a clear recommendation for a federated model of Smart Data governance in the medium term. Under this approach: 

• Sector-specific implementation entities would lead delivery within individual sectors, tailoring Smart Data schemes to sector needs. 
• A central Smart Data Coordination Entity would provide shared services and mandatory guidance to ensure consistency and interoperability across sectors. 
• Existing regulators would retain responsibility for enforcement within their sectors. 

This model balances flexibility and pace in individual sectors with the coordination needed to support cross-sector data sharing. 

Looking further ahead, the research also explores how Smart Data governance could evolve over time, including the potential benefits of greater centralisation as the Smart Data ecosystem matures. 

Why it matters 

As Smart Data expands into new sectors, governance choices made now will shape how effectively schemes work in practice – and whether people trust them. 

This research provides a practical, evidence-based foundation for designing governance models that support innovation while protecting consumers, enabling the UK to build a coherent Smart Data economy that works across sectors. 

Download the report 

You can access the full report here on the Gov.UK website: The future of Smart Data: developing governance models (PDF, 142 pages)

Get in touch 

If you’d like to discuss how your organisation can apply the findings, explore partnership opportunities or join our upcoming events, please contact katie.burns@thepsc.co.uk.