Open Finance: European Union's next step

DIGITALISATION AND TECHNOLOGY OPEN FINANCE AND FIDA NEXT STEPS security concerns, highlighting the need for robust safeguards to protect sensitive customer information. The Financial Data Access (FiDA) proposal, currently under negotiation, provides a framework for the development of open finance in the EU – overall aiming at enhancing opportunities for customers “to benefit from open, fair, and safe data-driven innovation in the financial sector”. The primary objective of the regulation is to empower customers, giving them effective control over their financial data and enabling them to make informed decisions about who and how will use it. Upon consent, operators in the insurance market (undertakings, intermediaries, the newly created Financial Information Service Providers – FISPs) could reuse customers’ historical data for a more accurate assessment of their financial and insurance needs and potential risks, fostering a more competitive and innovative ecosystem. Since the sharing schemes introduced by FiDA should require improved interfaces (versus current practices such as screen scraping), higher quality and timeliness of shared data are expected to support the development of innovative services. FAUSTO PARENTE Executive Director – European Insurance and Occupational Pensions Authority (EIOPA) Open finance: European Union’s next step EU’s open finance initiative: Weighing benefits and risks. Open finance is a key component of the European data strategy. It...