The European Union’s proposed Financial Data Access (FIDA) regulation — once heralded as a cornerstone of the bloc’s digital finance ambitions — now finds itself mired in uncertainty.
FIDA in flux: What next
Initially flagged for potential withdrawal amid broader efforts to simplify the regulatory environment, FIDA has since re-emerged in the European Commission’s 2025 work programme.
But its future remains far from settled.
FIDA was introduced in 2023 as the EU’s answer to expanding open banking into Open Finance — with the aim of enabling secure and standardised data sharing across the financial services ecosystem.
The regulation seeks to empower consumers by facilitating access to more personalised financial products, while promoting competition and innovation.
But despite its lofty ambitions, FIDA’s trajectory has been anything but smooth.
Political Tensions and Industry Pushback
According to a leaked document seen by The Banker, the Commission had initially shelved the regulation, arguing it conflicted with its current simplification goals.
This triggered alarm across the financial services industry.
Analysts suggest the move reflected a broader political pivot — with the EU seeking to remain competitive amid a deregulatory push in the US under Donald Trump’s second administration.
“There’s a real fear in Europe that overregulation is undermining productivity and deterring investment,” says Mathieu Savary, Chief European Strategist at BCA Research.
For banks already struggling under capital ratio requirements and legacy tech burdens, FIDA represents a potential cost burden without a clear return on investment.
Indeed, estimates suggest the cost of compliance could run into the tens of millions for mid-sized banks — and potentially more for larger institutions and insurers.
“It’s not a lucrative proposition,” says Rik Coeckelbergs, CEO of The Banking Scene. “The economics just don’t stack up.”
A Fragmented Reception
Industry responses to FIDA have been mixed.
While some stakeholders welcome the potential for data-driven innovation, others warn that the regulation risks turning banks into little more than data pipelines — stripped of competitive edge and revenue derived from proprietary insights.
“If banks simply become plumbing,” argues Kjeld Herreman of Paylume, “only those with the largest scale will survive.”
Opposition has also emerged from within the EU’s legislative apparatus.
Some commissioners have raised concerns around data privacy and competitive fairness, particularly if tech giants were permitted to access sensitive financial data under FIDA.
European advocacy groups such as Finance Watch have similarly warned of risks associated with allowing unregulated tech players unfettered access to consumer data.
A Call for Clarity and Caution
Experts now anticipate significant revisions as FIDA enters the trialogue stage of negotiations between the Commission, the European Parliament, and member states.
Suggestions on the table include the establishment of a central governance authority, implementation sandboxes for controlled experimentation, and clearer limitations on scope and access.
Tuulia Karvinen, legal counsel at the Finnish Financial Services Association, argues that FIDA should initially be applied only to clearly beneficial use cases.
She also calls for stricter definitions around eligible actors and data types, warning against overreach into sensitive domains such as health insurance and national pensions.
A Regulation at a Crossroads
Whether FIDA survives in its current form — or at all — will depend on the EU’s ability to balance innovation with economic and operational pragmatism.
For now, the financial industry is left in a state of watchful waiting.
As one senior European banker put it: “Until we hear otherwise, we must assume it’s still on the agenda. But in its present form, FIDA risks creating fragmentation — not cohesion — in Europe’s financial data landscape.”
One has to ask…At 1 hundred million euro – is the FIDA bill regulating customer data worth its price?
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