Financial Data Access (FiDA) Regulation
What do Geopolitics and an Independent European financial services future have in common? 🤔
More than you might think.
Recent global geopolitical tensions have once again highlighted the risks of Europe’s overdependence on external powers. Now, another critical issue is at stake - one that could undermine Europe’s financial sovereignty and hand a competitive edge to non-EU Big Tech.
Did you hear about FiDA?
The Financial Data Access (FiDA) Regulation is an EU legislative proposal aimed at facilitating the sharing of customer financial data between banks, fintechs, and third-party service providers to promote competition and innovation in the financial sector.
While FiDA aims to boost Europe’s leadership in the data economy, it could instead:
- Force banks to share customer financial data with third parties.
- This means huge implementation costs and reduced profitability for the EU banking sector.
- The biggest potential winners? US Big Tech, which will gain easy access to European financial data.
- The current discussions need to reflect the geopolitical context and its impact on European competitiveness.
What should Europe do?💡
At a time when governments in key global markets are loosening regulations to support their own industries and raising concerns about Europe’s regulatory stance on Big Tech, FiDA risks putting European businesses at a disadvantage - ultimately strengthening global gatekeepers, impacting jobs, financial stability, and undermining the EU’s strategic autonomy. Given these far-reaching consequences, policymakers must reconsider FiDA or abandon it altogether to ensure that Europe’s data economy works for European businesses and citizens – not against them.