FIDA proposal (financial data access)
A 2023 EU regulation proposal that would organize the sharing, with the customer's consent, of financial data held by banks, insurers and savings managers, beyond payment accounts alone.
The second payment services directive opened bank payment account data to authorized third-party providers, with the customer's consent. The proposed regulation on financial data access, presented by the European Commission in June 2023, sought to extend this principle to a much wider field: savings, investments, credit, pensions and insurance contracts. A customer could authorize a third party, comparison site, adviser, another insurer, to access data on the customer's contracts to make an offer or provide a consolidated view of wealth. Data holders, insurers included, would have to make these data available in standardized formats, within data-sharing schemes organized by the industry, with regulated compensation. Some life and health insurance data, sensitive for pricing, are subject to restrictions on use. The text drew strong reservations from financial players, who point to implementation costs, the risk of data being captured by large digital platforms and weak customer demand; its adoption, long under discussion, remains uncertain. For insurance, the stake is competitive: access to existing contract data would make it easier to compare and switch insurers, and would redistribute the advantage that exclusive knowledge of one's own customers gives today.
Textbook case: a customer authorizes a comparison site to access data on his home, motor and life insurance contracts. The tool spots a high-fee life insurance contract and a duplicate cover between his bank card and his home policy, and proposes a reorganization of his covers.
FIDA, Financial Data Access, open finance
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