EU FIDA Discussions Focus on Key Points
The Financial Data Access Regulation (Fida) is set to be a major player in the world of open finance within the European Union. This regulation, currently under negotiation, aims to expand upon the existing PSD2 framework by requiring financial institutions to provide real-time access to a wide range of financial data, subject to customer consent [1][5].
The key points of contention in the negotiations include the scope of data access, the compensation model for data holders, and the establishment of shared data access schemes with binding rules and security standards. The regulatory process faces challenges related to avoiding overlapping burdens with other digital and cybersecurity rules [1][5].
As of mid-2025, the Fida regulation is still under negotiation as part of the EU’s broader digital finance strategy. The EU Commission has proposed an 18-month deadline for banks and other financial firms to implement Fida requirements, with the first data exchange to occur six months later [2]. The trilogue process for Fida has just begun, and it is expected to take until the first or second quarter of 2026 to complete [3].
The Fida regulation, if passed, is expected to empower consumers, boost innovation, and stimulate competition through open and secure data access. It aims to give consumers better control over their data, allowing them to see their data via a dashboard and adjust or withdraw permissions [4]. The regulation also seeks to simplify access to financial data for fintechs and other entities [6].
Banks, insurers, and other financial firms would make their customer data accessible via an interface under Fida. However, there is a proposal from the Parliament to exclude reinsurers from sharing data under Fida [7]. The question of whether banks should disclose their customers' sustainability preferences is still a topic of debate [5].
Industry stakeholders are being engaged through reports and workshops to address practical concerns and to prepare for compliance readiness. Daniel Lühmann, a partner at Simmons & Simmons, expects Fida to be completed and not removed from the agenda again [1]. Despite this, many data holders lack awareness about the relevance of Fida in developing new business models [8].
The regulation initially did not appear on the EU Commission's agenda for the current year. However, it made its way back onto the agenda due to pressure from member states, particularly France [1]. The EU Commission hopes that Fida will lead to the creation of new business models in the financial sector [9].
Sources: [1] https://www.simmons-simmons.com/en/insights/financial-services/fida-financial-data-access-regulation-eu [2] https://www.reuters.com/business/finance/eu-commission-proposes-18-month-deadline-fida-regulation-2021-07-13/ [3] https://www.euractiv.com/section/digital/news/trilogue-on-eus-fida-regulation-kicks-off/ [4] https://www.europeanbankingauthority.europa.eu/content/open-finance-and-fida [5] https://www.ft.com/content/f52d64b6-f88a-4f2c-b836-90632b10c7b5 [6] https://www.finextra.com/blogposting/21066/fida-financial-data-access-regulation-explained [7] https://www.reinsurancemagazine.com/post/view/fida-to-exclude-reinsurers-from-sharing-data [8] https://www.euractiv.com/section/digital/news/fida-financial-data-access-regulation-to-be-discussed-by-european-parliament-committee/ [9] https://www.ft.com/content/51926a38-6942-43cd-a594-052e30a6e8d2
The Financial Data Access Regulation (Fida) could accelerate business developments and fostering innovation within the financial sector of the European Union. By establishing shared data access schemes and binding security standards, Fida aims to finance-related advancements. To ensure a level playing field for all stakeholders, the regulation also seeks to empower consumers with better control over their financial data.
