EU’s Financial Data Access Regulation Moves Closer

The European Union is edging closer to implementing its Financial Data Access Regulation (FiDA), a sweeping legislative effort designed to expand open finance and give consumers greater control over their financial data. Lawmakers in Brussels say the regulation, which has been under discussion for more than two years, could be finalized by early 2026, with phased implementation shortly afterward.

FiDA builds on the foundation laid by the EU’s revised Payment Services Directive (PSD2), which opened the door to secure data sharing between banks and third-party providers. But where PSD2 focused primarily on payments, FiDA aims to broaden the scope, covering a much wider range of financial products such as mortgages, savings, investments, pensions, and insurance. The goal is to allow consumers and businesses to access, share, and move their data seamlessly across service providers, fostering competition and innovation.

Supporters of the regulation argue that FiDA could transform Europe’s financial services landscape. By making data more portable, customers could easily switch providers, compare tailored products, and benefit from new services built on top of standardized access. Fintechs in particular stand to gain, as they could develop tools that aggregate financial information across multiple accounts, offering consumers a holistic view of their finances. Banks, meanwhile, are expected to face greater pressure to improve services and pricing to retain customers.

However, the regulation also poses challenges. Industry leaders have raised concerns about data privacy, security, and the potential compliance burden of building new infrastructure for data sharing. Some banks warn that opening access to sensitive information such as investment or insurance data could increase the risk of cyberattacks if safeguards are not watertight. Regulators counter that FiDA will come with strict technical and legal requirements for data handling, ensuring that only authorized and licensed entities can access the information.

For fintech startups, the regulation represents both an opportunity and a test. Companies able to leverage open finance responsibly could see rapid growth, while those failing to meet high standards of trust may struggle to compete. Venture capitalists have already signaled strong interest in backing firms that can build platforms for account aggregation, personalized financial planning, and credit scoring based on richer datasets.

Policymakers say FiDA is not just about consumer convenience but also about leveling the playing field. By forcing incumbents to share data on equal terms, the EU hopes to reduce barriers to entry for smaller firms and stimulate competition across the bloc’s fragmented financial markets.

As negotiations move forward, stakeholders are lobbying hard to shape the final text. The European Commission insists that FiDA is a cornerstone of its digital finance strategy and that implementation will proceed, even if some compromises are needed. For now, Europe’s financial sector is bracing for a future where data becomes as important as capital in driving growth and innovation.