Original text here from Patrice Bernard (LinkedIn)
Nearly a year and a half after the European Commission unveiled its Financial Data Access (FiDA) proposal, its approval by the EU Council in early December paves the way for its imminent ratification by Parliament. Once passed, the countdown to its implementation will officially begin.
While the initial announcement was met with widespread indifference—as I noted at the start of 2024—the progress in the legislative process has finally caught the attention of key stakeholders, such as Crédit Mutuel, who, unsurprisingly, are pushing back against the new obligations that could weigh heavily on their operations. Nevertheless, it seems unlikely that this wave of opposition will significantly impact the final vote, making it imperative for the industry to start preparing without delay.
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If the law is adopted in the coming months, and its implementation timeline of 18 months is confirmed—even allowing for some inevitable delays—the scale of the undertaking demands that most affected organizations begin preparations this year. The experience with payment data under PSD2 offers a useful precedent, including valuable lessons learned.
A Monumental Undertaking
The complexity of the task cannot be overstated. Each business line—including those with little experience in implementing public interfaces (such as insurance)—will need to:
Achieving this by the end of 2026 (even with some margin for error) will be impossible without launching dedicated studies immediately, particularly regarding the internal accessibility and modalities of the required data sources. For some sectors, such as asset management, these internal hurdles could be the first major obstacle. Failing to address them promptly may expose laggards to sanctions—but that may not be the worst of their problems.
The Competitive Stakes
The looming question is one of usability. First-generation open banking largely failed to meet expectations in this regard. However, with FiDA’s extended, comprehensive coverage and advanced formalization (notably regarding interface contracts), the vision of open finance it sets out could unlock real opportunities for innovative products and services. Organizations that move quickly and embrace these opportunities will gain a significant competitive edge.
A Priority for 2025
Between regulatory pressure and its potential as a catalyst for innovation, FiDA should top the agenda for Europe’s financial sector in 2025. The stakes are high—not just in avoiding penalties but in shaping the future of financial services.
