The Misguided Argument Against Rejecting FiDA
The European Union's Financial Data Access (FiDA) regulation, a proposal aimed at improving access to and sharing of financial data beyond traditional Open Banking, is currently under negotiation between the Commission, Parliament, and Council.
As of mid-2025, FiDA seeks to establish a comprehensive and harmonized EU-wide framework for third-party access rights across the broader financial services sector. This is part of the EU’s broader Digital Finance and Open Finance strategy to stimulate innovation, improve data usability, and enhance customer control over personal financial data.
Key points of contention in the ongoing discussions include the scope of data access, monetization of data, handling of "BigTech" companies, and licensing for market participation. The European Parliament tends to favor a wider scope for more comprehensive access, while the Council is more cautious about overextension. Discussions also concern whether and how third parties or BigTech companies can monetize accessed financial data, with arguments for both strict limits and transparency to incentivize innovation.
Regarding BigTech companies, proposals include licensing or specific regulatory requirements to prevent market abuse and ensure consumer data protection. The need for all third parties accessing financial data to hold licenses or certifications to participate in the EU open finance market is another contentious issue.
Notably, FiDA builds on PSD2's open banking data sharing but sets a precedent for regulating other sectors as part of the EU's open data strategy. Many other countries, such as the UK, are making significant strides towards comprehensive data regulations and the integration of data as assets in the economy.
Nicola Breyer, a prominent figure in the Fintech world, has been reporting on Payment & Banking in her Open Finance column "Nicola makes data clear" since 2025. Breyer, who has extensive experience at Qwist, OptioPay, PayPal, and as a consultant for Fintechs in various European countries, emphasizes the need for a shift in the discourse from "if" to "how," focusing on clear use cases for collaboration and testing with customers.
While many positive voices support a European data legislation like FiDA, there are concerns within the banking and insurance industry. Issues include the scope of data, costs, monetization model, potential entry for large US tech companies, and handling of BigTech companies. However, constructive discussions are needed on implementing big themes like the transformation in the financial advisory industry, peak customer experience through the use of AI, further penetration of digital customer groups, and efficiency gains in companies through standardized and structured data exchange using Open Finance.
As the trilogue talks continue, the aim is to finalize detailed rules and obligations that balance innovation, competition, and data protection in the expanding EU Open Finance market. The exact timelines for adoption depend on the outcome of these discussions.
- The FiDA regulation, part of the EU’s Digital Finance and Open Finance strategy, aims to offer third-party access rights across various business sectors, particularly in Fintech and finance, utilizing technology to stimulate innovation, improve data usability, and enhance customer control over personal financial data.
- Ongoing discussions regarding FiDA's implementation involve contentions about the scope of data access, monetization of data, the role of BigTech companies, and licensing for market participation within these sectors, such as Fintech and finance, as the European Union strives to maintain a balance between innovation, competition, and data protection.
