How FiDA is Shaping the Data Landscape of Open Finance

FiDA Regulation: The Impact on Financial Services

Currently in its final legislative phase, the EU’s FiDA Regulation is poised to redefine the standards for data sharing across financial services. Its impact will require organisations—both those directly affected and those seeking opportunity—to fundamentally reimagine their approach to data management and collaboration.

What is FiDA?

As we have seen with ethics and the increasing prevalence of AI in the EU AI Act, long-standing debates around data, trust, and innovation are converging into tangible regulatory action. Nowhere is this more apparent than in the emerging Open Finance landscape whereby firms can being to share financial data with third-parties to give consumers great control of their financial data. Financial services across banking, insurance, and capital markets are being called to rethink how data is governed, shared, and ethically used.

Viewed as an extension of open banking and the current PSD regulations, the European Commission’s Framework for Financial Data Access (FiDA) will regulate how financial data is accessed and share. Its core aim is to open up the full range of financial products—not just payments, but also pensions, mortgages, and investments—to secure, consent-based data sharing. As this future quickly approaches, resilient data architectures, strong data protection measures, and high-quality data are more crucial than ever.

Unlocking Open Finance Opportunities

The implications of FiDA are significant. This move has the potential to transform financial services delivery across Europe and the world. For consumers, this opens the door to more personalised financial services, integrated tools, and seamless experiences. For financial services, it offers a chance to innovate and build highly customer-centric services rather than having product silos.

This is not the time for financial institutions to take a wait-and-see approach. Although not enshrined in law yet, the regulatory direction is clear. Organisations that act now will be best placed to innovate with confidence, credibility, and compliance.

The growing emphasis on data transparency, democratisation, and regulatory evolution is creating powerful new opportunities for firms to strengthen their data foundations. Under FiDA, high-quality, well-governed data isn’t just a compliance requirement—it’s a strategic asset. Organisations that invest in trusted, consistent, and ethical data practices will be best positioned to unlock innovation, build customer trust, and lead in an open data economy.

Realising Potential Value

To successfully navigate and capitalise in this evolving landscape, financial services wanted to a play a role in open finance should prioritise several key strategic areas.

Become more competitive by strengthening your firm’s data value proposition

In a FiDA-regulated world, ‘data-rich organisations’—those strong in quantity, quality, and analytical capability—are positioned to lead. The demand for high-quality, near real-time data elevates data itself as a strategic asset. Firms with good data quality and advanced data capabilities will be able to deepen customer relationships, power personalised cross-selling of a wide range of financial products, and ultimately monetise their data better. Open data sharing will sharpen competition and highlight to shareholders and executive Boards about just how valuable information assets can be, making proactive data strategies more important than ever.

Be more agile to product enhancements by strengthening near real-time data sharing

Many data teams currently focus on internal reporting and infrastructure. But a FiDA future may demand new skillsets or strategise on existing ones—particularly around building secure APIs to share and capture data across third parties in near real time. Firms that can do this reliably and securely will gain a distinct strategic edge, enabling more responsive services and elevated customer experiences.

Build robust internal data capabilities by investing in scalable architectures

Open finance may dramatically increase the volume and velocity of customer data accessible to data teams. Legacy systems and inflexible architectures will struggle to keep pace. Scalable, cloud-native, and modular data solutions will be essential to handle growth without compromising performance or inflating costs. Smart investments here will protect operational agility and maintain development velocity.

Enhance your customer’s trust through consent assurance

As data sharing becomes more prevalent, customers will expect increased transparency and control over how their data is used. Firms must be ready to respond quickly to individual consent-related queries, with adaptable and well-governed policies—or risk losing access to the very data that they rely on. Clear, proactive, and responsive data governance will essential to maintaining trust and compliance.

FiDA is Still Evolving

Many aspects of the regulation remain open to interpretation and have been flagged as key issues for further consideration.

Financial Data Sharing Schemes (FDSS)

One major area of uncertainty is the establishment of Financial Data Sharing Schemes. As of now, no specific regulator or industry body has been appointed by the European Commission to lead the setup of FDSS. This presents challenges similar to those faced in the rollout of open banking most notably, the lack of a single API standard, which has hindered interoperability and the full realisation of open finance’s potential. The situation is even more complex under FiDA. The scope of data involved is far broader and less standardised than in open banking. Without a unified API framework, there is a risk that implementation could become fragmented, reducing effectiveness and increasing operational burdens for all parties involved.

Reasonable Compensation Models

Another unresolved area is how data holders will be compensated. While the regulation outlines that FDSS will establish models to determine maximum compensation that can be charged by data holders, there is currently no agreed-upon approach for what constitutes a fair and sustainable funding model. This opens up broader discussions about the cost and value of data in a world where access is becoming increasingly democratised. Early thinking around FiDA suggests that compensation levels should reflect the effort required to make data accessible, but translating that principle into a practical, industry-wide model remains a challenge.

Financial Exclusion Risks

Consumer protection is also front of mind. The European Commission has tasked the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) with developing guidelines to introduce safeguards and prevent financial exclusion. While consumers will ultimately grant permission for their data to be shared, the determination of which data users can receive that information will fall to national competent authorities (NCAs) within the EU. However, questions remain around how access to this data could inadvertently contribute to financial exclusion—or other forms of exclusion—particularly if it is used by third parties that are not held to the same regulatory and ethical standards as traditional financial services providers. Striking the right balance between innovation, competition, and consumer protection will be crucial.

For firms, waiting for clarity on these open questions represents a missed opportunity to stay ahead of the curve and prepare for the future. We believe Open Finance is inevitable and that taking early action will distinguish industry leaders from those left behind.

How Affinity Reply Can Support

At Affinity Reply, we specialise in building the foundational data capabilities that enable firms to stay ahead in an evolving regulatory landscape. We understand that strong, well-managed data operations empower organisations to be more agile, responsive, and better positioned to seize opportunities such as Open Finance.

Drawing on our extensive experience in regulatory preparedness, Affinity Reply provides expert guidance to help firms get ready for FiDA. Our architecture-led approach ensures that solutions to FiDA-related challenges are seamlessly embedded into the everyday operations of your data teams by delivering lasting, practical impact.