European banking customers expect seamless, personalised and secure digital solutions while European regulators are advocating for a data-driven economy, underpinned by legal frameworks that facilitate data sharing. As part of this effort, the European Commission introduced the regulatory proposal for FIDA in June 2023, aiming to give customers more control over their financial data and make data sharing easier and safer.

FIDA has a much broader scope than PSD2 had, covering an extensive range of financial products (e.g. savings, mortgages, lending, insurance, investments) and all customer segments (i.e. retail, corporate, SME). For financial institutions, this means adapting to an even more open, data-driven landscape, where securely accessing and using customer data to deliver value will be key.

The Euro Banking Association (EBA) surveyed experts from financial institutions across more than 15 European countries to understand their views on the opportunities and challenges of the proposed FIDA regulation. In a report released today, the EBA shares the results and offers practical recommendations and frameworks to help market participants prepare for FIDA implementation.

“FIDA brings customer data closer to institutions, enabling its use across the entire customer journey,” says Edwin Sanders, Chair of the EBA’s Open Finance Working Group (OFWG). “50% of our survey respondents see that as a significant source of strategic and business opportunities. The other 50% see it as regulatory obligation with potential risk, including the loss of customers and revenues.”

The EBA survey identified key opportunities to enhance customer experience and open new revenue streams. It also highlighted challenges, such as cost or tight implementation timelines, and the concern that FIDA may create a non-level playing field between financial institutions and international tech giants. “Financial institutions generally see FIDA as a potential driver of innovation, but they are concerned about their return on investment,” adds Sanders. “To reap the benefits of the evolving digital landscape, it is important that financial institutions drill into FIDA now to explore its opportunities, address its challenges and ultimately shape a more dynamic, customer-focused future.”