European Fintech Industry Response to the Latest FIDA Proposals

Several European fintech representatives have submitted a formal response to the European Commission’s recent proposals for simplifying the Framework for Interchangeability of Data Access (FIDA).

While generally in favor of the Commission’s overarching direction, industry stakeholders have raised concerns that certain elements may stifle innovation, competitiveness, and consumer empowerment.

Industry Welcomes Alignment with Other Regulatory Frameworks

Fintech stakeholders have welcomed provisions that align FIDA with other regulatory frameworks such as Payment Services Regulation (PSR) and Payment Services Directive III (PSD3). They particularly appreciate the authorisation process for Account Information Service Providers (AISPs) to become Financial Information Service Providers (FISPs), which ensures high-quality interfaces for data access. Lessons from PSD2, where poor API implementation hindered service development, are reflected in these proposals.

Support for Maintaining Broad Data Scope

There is support for maintaining a broad scope of data coverage under FIDA, including data from occupational pension schemes and insurance undertakings. Additionally, stakeholders back the introduction of interoperability mechanisms through the voluntary use of European Digital Identity Wallets.

Industry Warns Against Restrictive Provisions

However, fintech organizations are urging co-legislators to reconsider several restrictive measures. One key concern is the proposed exclusion of “large corporates” from FIDA’s definition of customers. Industry representatives argue that this contradicts existing financial regulations and could hinder services targeting this segment.

Another contested point is the exclusion of credit rating agencies from the regulation’s scope, which fintech actors say would impair cross-border access to relevant data for personal finance management tools. Additionally, limiting access to historical financial data to a ten-year period is seen as unnecessarily restrictive and inconsistent with the current availability to customers.

The industry also disagrees with the Commission’s preference for a harmonized, centrally imposed scheme for API functionality and data standards. Instead, stakeholders advocate for a market-led approach, citing the success of premium APIs and industry-led initiatives like the SEPA Payment Account Access (SPAA) scheme under PSD2.

Call for Customer-Centric Approach to FIDA

Fintech groups further call for a customer-centric approach to FIDA. This includes continuous API-based access to data via user interfaces and a clearer distinction between “data access” and “data sharing” to avoid confidentiality concerns.

According to respondents, these adjustments would help FIDA support Open Finance in Europe more effectively, encouraging innovation while protecting consumers and aligning with broader digital competition objectives.