As Europe advances towards enhancing open finance through the implementation of Financial Data Access (FIDA) legislation, various associations are urging for a comprehensive assessment of its potential impacts to ensure the sector’s competitiveness remains intact.
Recently, the European Council reached an agreement on a proposed framework for FIDA, designed to facilitate the sharing of customer data among financial institutions. The Council has largely supported the European Commission’s original proposal, adopting a phased implementation strategy.
The Council asserts that improved data sharing will enable market participants to offer consumers highly personalized financial products and services, such as tailored investment opportunities, streamlined loan application processes, and lower interest rate options. This approach is expected to foster a more competitive financial environment and enhance access to finance for consumers and SMEs.
The next step involves negotiations between the Council and the European Parliament to finalize the legislation before its official adoption.
In response to these developments, several industry associations—including the Association for Financial Markets in Europe, the European Association of Co-operative Banks, the European Banking Federation, the European Fund and Asset Management Association, the European Savings and Retail Banking Group, and Insurance Europe—have issued a joint statement.
They are advocating for a “more focused and evidence-based approach that delivers clear benefits to European citizens and companies.” The statement emphasizes the need for additional time for careful examination of the broader and practical impacts on both consumers and the industry. Without such scrutiny, they warn that FIDA may not achieve its intended goals and could potentially compromise the protection of EU/EEA citizens as well as the competitiveness of the European financial sector.