EU OPEN FINANCE RULES the data economy . They recognise this is a worthwhile venture , as FIDA essentially opens the gateway to the data economy .”
Incumbents may struggle to match FinTech innovation in customer experience . “ Traditional institutions have historically found it more challenging to develop these sophisticated customer journeys ,” Chris points out . “ The key will be creating user experiences that demonstrate clear advantages to clients who choose you as their data user .”
Regulatory requirements create barriers to entry However , FinTech companies must prepare for both the opportunities and regulatory requirements . They will need to obtain licenses and participate in eventually multiple data sharing schemes , which may operate at national rather than European level .
“ From today ’ s point of view , we anticipate data sharing schemes will not be uniform across Europe ,” Chris explains . “ Instead , we ’ re likely to see numerous schemes at the national level , with different industries potentially serving as structuring factors for data sharing schemes .” From an efficiency point of view a harmonised European scheme would be preferable , but discussions among the industry players regarding uniform schemes have not commenced .
Participation in the schemes is fundamental to market access . “ Becoming a member of data sharing schemes is a prerequisite for data users who wish to take advantage of the
POTENTIAL NEW AREAS OF FINTECH COLLABORATION POST-FIDA
DATA AGGREGATION SERVICES : Create platforms consolidating customer data for a holistic financial overview .
PERSONALISED FINANCIAL PRODUCTS : Collaborate with insurers and asset managers to develop tailored solutions building upon shared data .
ENHANCED RISK ASSESSMENT TOOLS : Use broader datasets to build advanced risk models with lenders , improving credit scoring and credit access .
REGTECH SOLUTIONS FOR COMPLIANCE : Develop regulatory technology to help institutions reduce FIDA compliance efforts .
OPEN FINANCE / EMBEDDED FINANCE ECOSYSTEMS : Create platforms for integrating banking , insurance , and investments with seamless customer experiences .
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