Data intermediaries: Big opportunity or red tape?

The UK government’s recent call for evidence on data intermediaries is making waves in the data world. While this might sound like regulatory jargon, it could have real implications for businesses that rely on data access and sharing, including our clients here at Friday Initiatives.

As a company that champions data sharing, we see both opportunities and risks in this development. 

While we support mechanisms that make data sharing more trusted, efficient, and valuable, we also recognise the threat of unnecessary regulatory burdens that could slow innovation and increase compliance costs, especially for smaller businesses.

What’s happening?

The government is exploring the role of data intermediaries, that is, organisations which facilitate the exchange of data between parties while ensuring security, transparency, and compliance. These could include personal data stores, data trusts, open data platforms, and federated learning environments.

Right now, data is often kept in separate systems by different companies, making it hard to share safely. 

If data intermediaries are introduced, they could act as trusted middlemen, helping businesses and individuals share information securely and fairly. For example, with more control over their own data, consumers can choose to share information in ways that benefit them, such as accessing personalised financial products, and are able to better decide who can access their information and for what purpose.

This could mean easier access to useful data, better privacy protections, and clearer rules for how data is used. It could also help businesses work together more easily, improve services, and give people more control over their own information. However, it could also bring new rules and frustrations for companies that handle data.

If data intermediaries introduce strict regulations and bureaucratic hurdles, they could slow down data sharing instead of improving it, making access to critical data more difficult and costly for businesses. Or, if intermediaries restrict data access or limit how businesses can use it, companies may lose valuable insights for marketing, risk assessment, and customer engagement. Additionally, if consumers must approve every data request, businesses could face delays and drop-offs, creating friction in the customer experience.

However, if intermediaries are designed to streamline and standardise data sharing without excessive red tape, they could actually reduce friction in the system. By acting as trusted, regulated middlemen, they could help businesses access more complete, accurate, and compliant data without the usual headaches of fragmented or inconsistent reporting.

So, whether this is good or bad depends on how flexible and business-friendly future regulations are. If done right, it could boost transparency and efficiency, but if done wrong, it could just add another costly layer of complexity.

The goal? To create a framework that allows individuals and businesses to share data safely and fairly, without risking misuse or privacy breaches, and without adding unnecessary red tape. For companies that rely on data-driven insights or customer profiling, this initiative could be a double-edged sword. 

Our view: 

At Friday Initiatives, we champion data sharing as a driver of business growth and innovation, but we also know that excessive regulation can slow progress. The key is finding a balance between trust, security, and business-friendly policies.

That’s why we encourage our clients to engage early, stay informed, and shape the conversation. If your business relies on data exchange, now is the time to assess how this could impact your operations and influence the debate.

What should you do now?

• Stay ahead: Monitor developments in data intermediary regulations and their potential impact.

• Engage in the discussion: Businesses should actively participate in consultations to ensure their needs are heard.

• Prepare for change: If regulations do emerge, early adopters will have a strategic advantage in compliance and innovation.

• Get future fit: Good governance unlocks data’s full potential, ensuring accuracy, trust, and compliance, while removing friction for faster access and smarter innovation.

We’ll continue tracking this issue and providing insights for our clients. If you’d like to discuss how this affects your business, let’s talk.