EU Moves Forward with Financial Data Access Framework

The Council of the European Union has reached an agreement on a proposed Financial Data Access (FIDA) framework, designed to create a standardized system for sharing customer data among financial institutions and service providers. This initiative is a key step in modernizing the EU’s financial sector, fostering innovation, improving competitiveness, and giving consumers more control over their data concerning financial information. The framework will apply to diverse financial data, including mortgages, loans, investments, insurance products, pensions, and crypto-assets.

Under the proposed rules, financial institutions will be required to provide secure and standardized access to customer data upon request, ensuring transparency while respecting trade secrets and intellectual property. Consumers will gain access to dashboards enabling them to manage their data permissions in real-time, including granting, withdrawing, and monitoring access. To balance responsibilities, financial institutions may receive compensation for making data available under certain conditions.

With the Council’s agreement, negotiations with the European Parliament will now proceed to finalize the legislative text. Once adopted, the regulation will be published in the EU’s Official Journal and come into effect across the member states two years after publishing it with Regulatory Technical Standards (RTS) to be developed. This move represents a critical step in adapting the EU’s financial sector to the digital age while safeguarding consumer rights and encouraging market innovation.