Many financial data sets are currently scattered across different systems and are difficult for consumers, companies or third-party providers to access. FIDA aims to tackle this fragmentation and create a more unified landscape. The initiative promises greater clarity, new digital services and fairer competition within the European financial ecosystem.
FIDA – A Definition
FIDA (“Financial Data Access”) is a proposed EU regulation that establishes a harmonised legal framework for secure, standardised access to financial data across Europe. It extends the existing open banking concept to open finance and requires financial institutions to provide data—such as information on accounts, loans, insurance policies and securities—via standardised interfaces at the customer’s request, always based on the explicit consent of the data owners. The aim of the regulation is to strengthen innovation, competition and efficiency in the financial sector while giving consumers greater control over their own financial data.
Key Elements of FIDA
FIDA requires banks, insurers and other financial service providers to make customer data available in real time to customers or licensed third-party providers via standardised API interfaces, provided that explicit customer consent has been given.
The regulation expands the existing “open banking” (PSD2) framework to the broader field of “open finance”, meaning that data relating not only to payments but also to loans, investments, insurance products and more will be included.
A mandatory customer dashboard will allow individuals to clearly view and manage who has access to their data and which consents they have granted.
Particularly sensitive data, such as that from health and long-term care insurance, is excluded from mandatory data sharing.
Financial institutions may charge data users a fee for providing access to the data.
Objectives and Significance
FIDA aims to enable new business models and digital innovations by ensuring that access to financial data is harmonised and secure across Europe. The regulation represents an important step towards the digitalisation of the financial sector and establishes a binding framework for data-driven competition. At the same time, FIDA brings significant obligations for data-holding institutions, including substantial adjustments to IT infrastructure, data protection and data management—alongside benefits such as increased transparency, efficiency and new digital services.
Benefits of FIDA for Banks and Financial Institutions
Banks and financial institutions can benefit from FIDA in several ways: enhanced customer experience through personalised, holistic services and greater transparency in data sharing, which in turn strengthens customer loyalty; opportunities for innovation and competition through the creation of new data-driven business models and services; new revenue streams through data monetisation, as banks can charge for data access; the ability to attract younger customer groups who prefer digital services and have higher expectations of financial products; the promotion of partnerships and ecosystems with fintechs and other players to jointly develop innovative financial solutions; and improved data protection, IT security and data management, which increases customer trust.
What Benefits Does FIDA Offer End Customers?
End customers primarily benefit from FIDA through increased control and transparency over their financial data, which they can share with third parties in real time and free of charge. This gives them access to tailored financial services that better fit their individual needs. Regulated data sharing makes it easier to switch providers or use independent comparison platforms, resulting in more transparent and comparable financial products. FIDA also enables more accurate risk assessments, which can lead to more competitive pricing for financial and insurance products. Overall, FIDA contributes to more efficient and customer-friendly use of financial data and strengthens consumer protection.
