Despite rumors, FIDA is moving forward
February 2025 – You may have seen some headlines like "FIDA: Now you see it, now you don't" over the last month suggesting that the upcoming Financial Data Act (FIDA) was scraped. So, what happened? 🤷♀️
A leaked working paper from the European Commission revealed that FIDA had been placed under Annex IV, the annex for withdrawals, which can signal that FIDA might be abandoned. The leak caused immediate concern throughout the financial sector, raising concerns that the EU might be back peddling on open finance initiatives. The media picked up on the story, speculating that intense lobbying by the banks against FIDA was behind the move.
It’s not out - it’s in and progressing
HOWEVER, when the European Commission published the official 2025 Commission Work Programme document later that same day it revealed that, in fact, FIDA had just been repositioned to Annex III – pending proposals, indicating that it is not only still in, but that it is progressing through the system. Indicating that the European Commission remains committed to FIDA as a cornerstone initiative to enable open finance.
What are some of the reasons banks are raising in opposition to FIDA?
- It adds too much complexity, i.e. by allowing third-party provider access to data
- It will put more consumer data in the hands of big tech and therefore needs stronger safeguards or to exclude big tech from the scheme
- It doesn’t provide a viable business model for the banks
- The infrastructural cost for the banks will prevent them from innovating and developing their own new services
So, what happens now?
FIDA, which is part of the upcoming Payment Services Directive (PSD3) initiative, will proceed as planned to the next stage: the “trialogue stage” where the European Commission, the European Parliament, and the Council of the EU, which includes representatives from each of the member states, will work together to agree on the final text. The industry players, both for and against, will lobby to have their opinions expressed through their Council members (in theory), rather than the rumor mill 😉. Stay tuned!
For an update on the latest developments in the trialogue process, read FIDA - What's next?
Learn more about FIDA
What FIDA means for the future of digital finance
