Critique of FiDA's dismissal deemed incorrect
The European Union is making significant strides towards a more transparent and secure financial data landscape. The Financial Data Access (FiDA) regulation, although not explicitly named in the current 2025 EU fintech regulatory landscape, is a part of this evolving framework.
The EU aims to regulate other sectors with a regulation as part of its open data strategy, with FiDA setting a precedent. The UK, too, is making big strides towards comprehensive data regulations (Smart Data Act) and integrating data as assets into the economy.
The Digital Operational Resilience Act (DORA) and the Delegated Act under Article 40 of the Digital Services Act (DSA) are key developments in this regard. DORA, although not directly related to FiDA, mandates robust operational risk management and enhances data access controls and cybersecurity practices among banks, insurers, and other financial institutions. The DSA Delegated Act, on the other hand, creates a framework for vetted researchers to access non-public data from very large online platforms.
Banks and insurance companies generally support these measures, emphasising the need for enhanced operational resilience and data security. However, they express caution about compliance burdens and the risk of overregulation potentially stifling innovation. The need for clarity on data access rules, especially regarding third-party ICT providers and cross-border data flows, is a frequent focus, with industry calling for harmonized standards to reduce fragmentation and complexity.
These regulations aim to strengthen EU digital sovereignty by improving control over financial and platform data and reducing reliance on non-EU technologies. At the same time, they have the potential to boost innovation, particularly in fintech and sustainable finance. However, if regulatory burdens become too heavy or fragmented, there is a risk of impeding competitiveness and slowing adoption of new technologies in the EU financial sector.
Nicola Breyer, a prominent figure in the Fintech world, has been a vocal advocate for a European data legislation that sets standards for sharing data across 27 countries, provides a regulatory framework, and strengthens digital sovereignty and innovation capacity in the EU. Discussions in the coming weeks may address the scheduling of schemes and legislation, the scope of financial data, monetization, business models, handling of BigTech companies, and the license for participation in the EU Open Finance market for Financial Information Service Providers (FISP).
The success of these initiatives will depend on the ecosystem between banks, insurers, advisors & intermediaries, TPPs, and FinTechs, along with a lean governance structure. The discourse needs to shift from "if" to "how" regarding FiDA, with a focus on clear use cases, constructive discussions, and the implementation of large-scale topics such as the transformation in the financial advisory industry, peak customer experience through the use of AI, further penetration of purely digital customer groups, and efficiency gains in companies through standardized and structured data exchange using Open Finance.
Major financial institutions have invested in modernizing their legacy systems, enabling them to implement modern data strategies and unlock the value of data within their own company and customer base. Many large associations have expressed opinions on FiDA, ranging from complete rejection to the moderate view that open finance is useful but needs improvement in the current bill. The German Open Finance Charter has been established, and discussions with associations and institutions are ongoing.
In summary, while a specific FiDA regulation per se is not detailed in current sources, the EU’s comprehensive data access and operational resilience regulations reflect ongoing efforts that touch on financial data access, balancing transparency, security, and innovation. The banking and insurance industries back stronger protections but seek regulatory clarity and proportionality to safeguard EU digital sovereignty without hampering innovation capacity. Implementation outcomes over the next years will be critical to these goals.
- The Financial Data Access (FiDA) regulation, although not explicitly named in the current 2025 EU fintech regulatory landscape, can be viewed as a part of the EU's open data strategy, aiming to set standards for sharing financial data across the 27 EU countries and fostering innovation in sectors like technology, business, and finance.
- Discussions in the coming weeks may focus on the implementation of large-scale topics such as the transformation in the financial advisory industry, peak customer experience through the use of AI, and further penetration of purely digital customer groups, as part of the FiDA regulation's efforts to enhance digital sovereignty and innovation capacity in the EU, while ensuring proportionality and clarity in regulation for the banking and insurance industries.
