EY EMEIA FinTech Leader Chris Schmitz says Financial Data Access regulation will create opportunities for startups as Brussels extends PSD2 model
EU OPEN FINANCE RULES
EY EMEIA FinTech Leader Chris Schmitz says Financial Data Access regulation will create opportunities for startups as Brussels extends PSD2 model
The European Union ’ s drive to create an integrated financial data market is entering a new phase as Brussels prepares legislation that will require banks , insurers , pension providers , investment firms and other financial institutions to share customer data with third parties – extending rules that have already transformed retail banking . First implemented in 2018 , the Second Payment Services Directive ( PSD2 ) forced banks to share account data with licensed third parties through standardised interfaces , creating a wave of FinTechs offering account aggregation and payment initiation services .
Now the European Commission aims to extend this model across the financial sector through the Financial Data Access ( FIDA ) regulation . First published in draft form in June 2023 , FIDA will require financial institutions to make customer data available through application programming interfaces ( APIs ). The regulation covers amongst others customer data related to credit agreements and accounts ( excluding payment accounts ), savings , investments in financial instruments , insurance-based investment products , crypto-assets , pan- European personal pension products , and certain non-life insurance products .
“ Many industry play particularly in insu asset management experience providi data through API in
CHRIS SCHMITZ , FINTECH LEADER , EY EMEIA
14 January 2025