FiDA: A New Era for Financial Data in the EU
On June 28, 2023, the European Commission presented a proposal for a new regulation to improve access to and sharing of financial data within the EU. The proposal builds on the principles of PSD2 but extends its scope. Unlike PSD2/3, which covers only account and payment information, FiDA would allow individuals and companies to securely share data on loans, investments, property insurance, cryptoassets, and pensions in a standardized way.
Today, customers’ financial data is fragmented across providers, leaving them with limited overview and control. FiDA aims to change this. New data-sharing requirements would open the door to new opportunities, enabling firms to:
Develop new customer solutions and advice: Offer more tailored products, consolidated overviews, and better financial guidance through richer, real-time data.
Strengthen customer relationships and streamline distribution: Accelerate onboarding and assessments, improve sales channels, and expand financing access for SMEs.
Optimize internal processes: Enhance credit assessments, risk management, and claims handling with new modeling capabilities.
FiDA is not yet finalized and negotiations are ongoing within the EU, but the legislation is expected to be introduced and has the potential to reshape market dynamics. The road ahead is challenging: firms will need to invest in IT infrastructure, standardization, and system adaptation; build processes for data quality, real-time operations, and license management; and analyze how competitors may use shared data. It is a significant transformation that will require both capital and resources within a relatively short timeframe.
At Avanti, we are closely following developments and have analyzed FiDA’s implications for different players in the financial sector. We see significant potential: increased sales, more efficient distribution, faster onboarding, and smoother administration once the regulation is in place.
