News & Insights

The European financial sector is entering a new era of data-driven innovation. The Financial Data Access (FIDA) regulation, frequently referred to as ‘Open Finance’, will be a key accelerant of this. FIDA builds on the foundations of the Payment Services Directive 2 (PSD2) but extends far beyond payments, reshaping how financial data is accessed, managed, and leveraged across the entire financial services ecosystem.

So how is the financial services sector reacting to this development? According to recent research conducted by INNOPAY on behalf of the Euro Banking Association, the industry remains divided: 50% of executives view FIDA as a catalyst for innovation and growth, while the other half see it primarily as a compliance burden. In this interview, Mounaim Cortet, Vice President INNOPAY (a business of Oliver Wyman) explains why they should seize the current window of opportunity to think through the strategic implications of this new regulation: “Institutions that strategically embrace FIDA are best positioned to lead in Europe’s evolving financial landscape.”

From Open Banking To Open Finance

Whereas PSD2 introduced data access to payment accounts, FIDA significantly expands the scope to include data on deposits, credit agreements (including mortgages), property & casualty insurance, investments, and pensions. It mandates continuous, real-time data access through standardized APIs for newly authorized third parties (‘Financial Information Service Providers’ or FISPs), provided that the customer has given their permission. 

“FIDA represents a paradigm shift,” says Mounaim. “While PSD2 laid the groundwork, FIDA creates a truly cross-sector data economy that will fundamentally change how financial services are delivered and consumed by consumers and small businesses.”

Data As The New Asset Class

At the heart of FIDA lies financial data, not just as a by-product of financial transactions but as a strategic asset. Financial institutions are investing heavily in data platforms and API-driven ecosystems to unlock value, deliver personalized experiences, and enable new business models.

“The institutions that succeed will be those that treat data as an enabler of their overall digital transformation objectives,” Mounaim explains. “API access to financial data will not only allow financial institutions to build more seamless, personalized experiences around existing financial products, but also to improve their efficiency in existing processes, such as onboarding, risk modeling, and underwriting. They will be able to create entirely new data-driven, customer-centric propositions, especially when the data is combined with artificial intelligence such as agentic AI. They can also use the financial data to further strengthen and accelerate emerging business models, such as those related to Embedded Finance.”

With greater access to financial data comes greater responsibility. “Transparency, permission, and security remain essential to winning and maintaining customer trust. FIDA’s permission dashboards and governance models as part of data access schemes need to be designed in such a way that they ensure customers remain in control to reinforce their trust, while enabling innovation at scale,” adds Mounaim.

New Propositions On The Horizon

In INNOPAY’s research, respondents identified 360° personal finance management, product switching, and long-term financial planning as the top three use cases for delivering value to customers based on API access to financial data. “These propositions promise to make customer relationships more ‘sticky’, shifting them from transactional interactions to holistic, advisory-driven journeys,” comments Mounaim.

Besides offering opportunities to improve relationships with retail banking customers, FIDA also has the potential to reshape propositions and business models for business customers. In this regard, the INNOPAY vice president highlights the symbiotic relationship between the Open Finance aspect facilitated by FIDA, and Embedded Finance. By providing the essential infrastructure for financial data access, FIDA allows the development of Embedded Finance solutions — often within vertically specialized software solutions — that offer seamless, personalized financial services.

Balancing Investment And Value

However, realizing FIDA’s potential comes at a price. Survey respondents expect compliance costs to be significantly (and as much as three times) higher than in the case of PSD2, as FIDA impacts most financial products and many related IT systems and processes.

“This is where strategy matters,” emphasizes Mounaim. “Compliance is mandatory, but organizations should aim to leverage their regulatory investments to lay the foundation for innovation. By aligning infrastructure upgrades with customer-focused goals, financial institutions can turn what at first appears to be a cost burden into a competitive advantage.”

Another critical factor is industry-wide collaboration. Without alignment, the risk of scheme fragmentation — with different countries, or even different sectors within the same country, creating incompatible schemes and technical standards — could undermine FIDA’s potential. “There are various interoperability initiatives at both EU level, such as the Berlin Group SEPA Payment Account Access (SPAA) scheme, and GiroAPI, and nationally. These should be leveraged where it makes strategic and operational sense,” states Mounaim.

Preparing For The Open Finance Future

With FIDA on the horizon, financial institutions face pivotal strategic choices. Will they lead, follow, or limit themselves to compliance?

Mounaim outlines a number of ‘no-regret moves’ for financial institutions:

• Create awareness at the C-level about the strategic implications of FIDA.
• Define a strategic approach (‘North Star’) and assess archetype strategies. As part of this, financial institutions should evaluate their positioning towards data access schemes, including the relevant timing and which prudent steps they can take.
• If financial institutions choose an opportunistic approach as part of their North Star, they should identify relevant use-case clusters that would strengthen or enrich their value propositions.
• Set up a dedicated taskforce to conduct an impact assessment. This should include developing a deeper understanding of FIDA’s implications on the business strategy and opportunities, the revenues at risk, the revenue upside (across the product portfolio and client segments), and the technology impact (including target architecture and potential synergies with PSD2/Open Banking platforms already in place).

The FIDA Proposal is still progressing through the political process, but many financial institutions are already gearing up for their 2026 budget discussions. To ensure FIDA is accounted for in those budgets, Mounaim recommends anticipating the high-level cost implications for FIDA implementation (CAPEX) and creating an initial plan for implementation, including timelines, next steps, and resourcing estimations.

“FIDA isn’t just another regulatory requirement. It’s an opportunity for financial institutions to redefine their role in customers’ financial lives. Those who embrace it strategically will shape the future of Open Finance. Those who don’t risk being left behind,” concludes Mounaim.

Transformative Rewards

FIDA represents both a challenge and a catalyst. While the compliance costs are significant, the potential rewards — personalized customer experiences, new revenue models, and a stronger competitive position — are equally transformative. The European financial ecosystem is evolving rapidly. Institutions that act decisively, invest strategically, and collaborate broadly will lead the way in shaping a data-driven future in which customer empowerment, innovation, and trust define success.