FS sector calls for ‘thorough assessment’ of Financial Data Access regulation

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Last week, the European Council reached an agreement on a proposed framework for FIDA that aims to open the access of financial institutions to each other’s customer data.

The Council has largely endorsed the European Commission’s original proposal, adopting a phased implementation approach.

Explaining its reasoning, the Council says better data sharing will allow market participants to target consumers with highly personalised financial products and services, for example investment opportunities, streamlined loan application processes or lower interest rate products.

This, it is claimed, would create a more competitive financial sector and improve consumers’ and SMEs’ access to finance.

The Council is now set to negotiate the final shape of the legislation with the European Parliament ahead of adoption.

In response, a gaggle of industry associations – the Association for Financial Markets in Europe, the European Association of Co-operative Banks, the European Banking Federation, the European Fund and Asset Management Association, the European Savings and Retail Banking Group, and Insurance Europe – have issued a joint statement.

In it, they call for a “more focused and evidence-based approach that delivers clear benefits to European citizens and companies”.

Continues the statement: “This necessitates further time for careful scrutiny of its broader and practical impact, both for consumers and industry. Without such an approach, FIDA will not only fall short of its ambition, but also undermine the protection of EU/EEA citizens and the competitiveness of the European financial industry alike.