FiDA: Uncertain negotiations ahead

The European Commission’s Financial Data Access (FiDA) proposal, presented in 2023, aims to establish a new framework for the sharing of customer financial data beyond the payments sector,  building upon and expanding the open banking principles introduced under the PSD2 to a broader range of financial products and services across the industry.

The intention is to empower consumers by giving them greater control over their financial information, as well as to stimulate competition and foster innovation in financial services. Courting some controversy from the outset, the proposal has raised  serious concerns regarding its necessity, proportionality, and practical feasibility. Real-world experience, notably from Australia, highlights this risk, where, despite substantial investment by industry players, consumer uptake has remained extremely low.

In line with the European Commission’s simplification agenda, and amid growing internal concerns about the proposal’s alignment with this objective, advanced discussions were held during the preparation of the Commission’s 2025 Work Programme on whether to withdraw the initiative altogether. Following intense internal debate, the proposal was ultimately retained and has since been the subject of ongoing interinstitutional negotiations. Several Member States have also advocated for a more market-driven approach and additional measures aimed at reducing regulatory burdens.

The Commission was also tasked with identifying ways to simplify the framework, and is currently working on translating these ideas into concrete legislative proposals, which form the basis for continued discussions between the co-legislators. While the original positions of the European Parliament and the Council were not fundamentally opposed in substance, they have approached the issue of simplification from different angles. The European Parliament, under the lead of Rapporteur MEP Johan Van Overtveldt (ECR, BE), has remained generally cautious, warning that simplification efforts must not lead to deregulation or the weakening of key consumer protections. The Council, by contrast, has emphasised the need to meaningfully address regulatory burdens, practical feasibility, and implementation costs.

From an industry perspective, FiDA continues to raise several unresolved concerns. Without careful calibration, the new framework risks becoming yet another example of well-intentioned regulation that imposes heavy costs without delivering proportionate benefits to consumers or the broader financial ecosystem. Eurofinas remains deeply engaged in the legislative process, continuing to advocate for a measured, evidence-based approach that genuinely promotes innovation while avoiding unnecessary administrative and compliance burdens.