EU OPEN FINANCE RULES
compliance requirements and potential monetisation models .
“ The regulator has established the term of ‘ Financial Data Sharing Schemes ’, effectively delegating the responsibility for defining these schemes to the industry itself ,” Chris explains . “ Industry participants must collectively determine the scope of data exchange and establish regulations governing adherence to these schemes .”
The complexity extends beyond technical implementation to include commercial considerations . “ There ’ s also the matter of scheme monetisation and data exchange ,” Chris notes . “ A comprehensive set of agreements must be developed in the coming months and years to ensure data exchange is properly governed by these Financial Data Sharing Schemes .”
These agreements will have direct technical implications . Any agreements reached within these schemes must be implemented in the backend systems and API infrastructure .
Even for banks with experience of PSD2 implementation , the breadth of data covered by FIDA creates new technical challenges . “ It ’ s a significant undertaking even for banks , as they must implement real-time data access across major backend systems ,” Chris emphasizes . “ Many industry players , particularly in insurance and asset management , have no experience providing real-time data through API infrastructures . For these sectors , the challenge is even more substantial .”
Brazil open finance provides valuable insights for European implementation The implementation of open finance in Brazil provides insights into the potential impact of FIDA . The Brazilian central bank introduced mandatory data sharing in 2021 through a “ top-down led process ,” which has gained 30 million users and generated two billion weekly API calls .
“ Banks were required to comply within a year , and since its launch , the system has attracted 30 million users across Brazil , generating more than 40 million client consents .” Chris explains .
The volume of API calls indicates substantial client activity in the Brazilian market , as Chris highlights . “ We ’ ve observed a decrease in interest rates for individual loans ,” he reports . “ Credit acceptance rates have risen , as banks and lenders can access a more comprehensive view of their clients by drawing data from multiple sources , rather than relying solely on their own records .”
The Brazilian experience provides a potential blueprint for European implementation . “ I ’ m optimistic that the European landscape will deliver similar benefits to both clients and financial service providers .”
Data sharing creates new commercial models for finance Ultimately , the FIDA regulation aims to empower customers to derive value from their financial data . The core objective is to give both corporate and retail clients the freedom to leverage
10 January 2025