European fintech stakeholders have formally responded to the European Commission’s proposals to simplify the Financial Data Access Regulation (FIDA), expressing broad support for regulatory harmonization while highlighting concerns over provisions they argue could stifle innovation, competitiveness, and consumer empowerment.
Industry Backs Regulatory Alignment but Flags Restrictive Clauses
Fintech representatives welcomed measures to harmonize FIDA with frameworks like the Payment Services Regulation (PSR) and PSD3, particularly the streamlined authorization process for Account Information Service Providers (AISPs) to transition into Financial Information Service Providers (FISPs). They also endorsed proposals to enforce high-quality data access interfaces, citing lessons from PSD2 where flawed API implementations previously hindered service development.
Stakeholders further supported maintaining a comprehensive data scope—including information from occupational pension schemes and insurance entities—and introducing interoperability through voluntary European Digital Identity Wallets, emphasizing these as foundational for open finance ecosystems.
Key Concerns Over Regulatory Exclusions and Prescriptive Standards
However, the industry urged legislators to reconsider several restrictive measures. A primary contention is the proposed exclusion of "large corporates" from FIDA’s customer definition, which they argue contradicts existing financial regulations and risks undermining services tailored to this segment.
Another contentious issue is the exclusion of credit rating agencies from FIDA’s purview, with fintech actors warning that this would impede cross-border access to critical data for personal finance management tools. Additionally, the ten-year limit on historical financial data access was criticized as arbitrary, conflicting with customers’ current rights to broader data retrieval.
Fintech groups also pushed back against the Commission’s preference for a centrally imposed scheme for API functionality and data standards. Instead, they advocated for a market-led approach, referencing the success of premium APIs and industry-driven initiatives like the SEPA Payment Account Access (SPAA) framework under PSD2.
Calls for Customer-Centric FIDA with Clear Data Governance
The response emphasized the need for a customer-centric FIDA, advocating for continuous API-based data access via user interfaces and a clearer delineation between "data access" and "data sharing" to address confidentiality concerns.
According to respondents, these adjustments would enable FIDA to more effectively support Open Finance in Europe—fostering innovation, safeguarding consumer interests, and aligning with the EU’s broader digital competition objectives.
