News & Insights

3. FiDA will lead to innovative use cases and new avenues for banks to capitalize on assets

The upcoming FiDA regulation builds upon PSD2 but will extend data access to a broader range of financial data (e.g. savings, investments, lending, mortgages, insurance) to support advanced financial use cases (e.g., better and more holistic personal finance advice, better product comparison and switching). Customers will be provided greater control over their data through tools like permission dashboards. For banks pursuing a more offensive strategy ‘beyond compliance’, it will open new avenues for partnerships and business models (e.g., by monetization of premium APIs). 

4. The EUDI wallet lowers costs and leverages bank’s customer data

The revised eIDAS framework, which introduces the European Digital Identity Wallet (EUDIW) ecosystem, mandates that banks must accept the digital wallet for identification and authentication purposes. The wallet will be offered with a high level of assurance, making it suitable for banks' onboarding and KYC procedures, potentially reducing associated costs. Additionally, banks can establish themselves in the ecosystem as issuers of credentials within digital wallets. This allows their customers to utilize these credentials to access digital services in third-party contexts, such as using a bank-issued income statement to demonstrate creditworthiness to a tennant.

5. Banks should consider strategic opportunities beyond compliance to maximize return on investments 

Instead of merely complying with forthcoming regulations like PSD3/PSR, FiDA, and eIDAS2.0 banks should focus on securing their future relevance by looking beyond short-term regulatory compliance and ROI. The key to this is exploring new use cases that leverage customer data and tools - such as permission dashboards - across various new emerging data sharing ecosystems. An overview of strategic directions and key actions for banks to navigate the data economy are presented below: 

6. Banks should acknowledge their position as trust anchor in data economy in the role of ‘data custodians’

The European vision of data sovereignty, supported by regulatory reforms, aims to enhance data sharing across sectors. To bring this vision to life, a permission dashboard is essential, enabling customers to control who has access to their data. Banks are uniquely positioned to serve as Data Custodians in customer’s everyday life by providing them secure tools to handle data access requests and manage their permissions.

In conclusion, bank executives at any bank wishing to participate successfully in the data economy will need to critically review their digital strategy, approach to partnerships and industry collaboration as well as their capabilities. They should recognize that putting customers in control of their money and data is imperative for future strategic and commercial relevance. Ultimately this approach will unlock new value and help banks to secure their future in the data economy. Reach out if you want to learn more about this to Mounaim Cortet or Pepijn Groen.