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The European Council recently reached an agreement on a proposed framework for the Financial Data Access (FIDA)regulation, aiming to enhance data-sharing among financial institutions to improve consumer and business access to financial services.
The Council endorsed the European Commission’s original proposal, opting for a phased implementation approach. According to the Council, improved data-sharing will empower financial market participants to offer tailored products and services—such as personalized investment opportunities, streamlined loan applications, and competitive interest rate products.
Proponents argue that FIDA will foster greater competition within the financial sector and enhance access to finance for consumers and small and medium-sized enterprises (SMEs).
The Council will now enter negotiations with the European Parliament to finalize the legislation ahead of its adoption.
However, a coalition of prominent industry associations—including the Association for Financial Markets in Europe (AFME), the European Association of Co-operative Banks (EACB), the European Banking Federation (EBF), the European Fund and Asset Management Association (EFAMA), the European Savings and Retail Banking Group (ESBG), and Insurance Europe—has issued a joint statement expressing concerns about the proposal.
In their statement, the associations call for a “more focused and evidence-based approach” to ensure tangible benefits for European citizens and businesses.
“This necessitates further time for careful scrutiny of its broader and practical impact, both for consumers and the industry,” the statement reads. “Without such an approach, FIDA risks falling short of its ambitions and may undermine the protection of EU/EEA citizens and the competitiveness of the European financial sector.”
The associations emphasize the importance of balancing innovation and competitiveness with robust consumer protection and practical feasibility to ensure the regulation achieves its intended objectives.
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