FIDA’s Latest and Greatest: Advancing towards open finance.
The journey of the Financial Data Access (FIDA) framework continues marking significant milestones along the way. Recent developments within the EU institutions show that the FIDA proposal is advancing towards its final legislative stages. With all institutions aligning on their positions, preparations are now in full swing for the upcoming negotiations – a pivotal moment in the legislative process.
After the finalisation of the FIDA proposal and entry into force, banks and insurance companies will need to ensure compliance with the FIDA Regulation. Data holders would be legally required to share customer data, once the customer requests it to be shared with another data user. The FIDA regulation would ensure that the customer understands exactly how the data will be used. Data holders would need to introduce a permission dashboard, giving the ability for customers to easily view and revoke permissions if they choose to do so.
Institutional developments and potential roadblocks.
At Insurely, we are excited to see that the EU institutions have made advancement on the FIDA proposal, bringing it closer to finalisation. To achieve an EU-wide framework that promotes seamless, secure and transparent access to financial data – a prioritization of FIDA in the coming months is very welcomed. By prioritizing comprehensive data accessibility, the framework empowers consumers and businesses to share and access financial data on their terms, unlocking new opportunities for collaboration and growth.
While the Council’s position aligns with the Commission’s proposal and the Parliament approach, some adjustments have been made that could influence the future shape of the regulation. The Council notably has revised the proposal by narrowing its scope compared to both the initial proposal and the Parliament approach, while introducing a step-by-step implementation.
But most importantly, the Council supports the link between data sharing and the existence of the Financial Data Schemes (i.e. commonly referred as the Linkage between Title 2 and 4), demonstrating that data sharing is only allowed within the Schemes framework. In the Commission’s and Parliament’s position, data access is not tied to the formation of Schemes, allowing consumers to access their financial data even before such Schemes are established.
Interinstitutional negotiations, so-called “trilogues”, are coming: what are they?
The next phase in FIDA’s journey is the trilogue negotiations, set to begin most probably in March 2025 at the earliest. Trilogues are interinstitutional discussions involving the European Parliament, the Council, and the European Commission. During these meetings, representatives from each of the above work together to reconcile their positions and agree on the final text. This stage is a crucial part for addressing any remaining differences and an important step to ensure that the legislation aligns with their shared vision. With FIDA’s potential to revolutionize open finance, the trilogue negotiations represent an opportunity to refine the framework for maximum impact.
What do we expect for the near future?
FIDA has not yet been included in the agendas of the Parliament, the Council and the Commission. This may adjust the timeline for progress, potentially pushing key discussions further into March 2025 at the earliest. In the coming weeks, the simplification narrative is set to gain momentum shaping perspectives on FIDA's role in the European financial sector and influencing the negotiation process. Such discussions could influence the negotiation process, potentially leading to further adjustments to the text.
When an agreed-upon version of the regulation is reached, reflecting input from all stakeholders and institutions, the final text is done. This marks the formal agreement on FIDA’s provisions, signaling that the regulation is ready for implementation across Member States.
What happens after finalisation?
Once the text is finalized, FIDA will become directly applicable in all Member States, meaning there is no need for individual countries to implement the regulation into their national laws. This ensures consistency and immediate enforcement across the EU.
For consumers, businesses, and financial service providers, this means key principles—such as enhanced data accessibility, consumer ownership, and secure sharing frameworks—will roll out smoothly across the EU, helping to modernize the financial landscape without delays or variations between the EU countries.
A defining moment for open finance.
FIDA’s progression toward adoption underscores Europe’s commitment to fostering innovation and empowering consumers in the financial sector. By maintaining its wide scope and prioritizing consumer rights, FIDA has the potential to reshape financial services, unlocking new possibilities for personalization, efficiency, and transparency.
At Insurely, we remain dedicated to supporting this transformative initiative and look forward to engaging with stakeholders as FIDA moves toward its final stages. The adoption of FIDA is not just a milestone—it’s the beginning of a new era for open finance, and we’re excited to play a part in shaping this future. If you want to discuss this further, don't hesitate to reach out.
