As the European Council moves forward with the Financial Data Access (FIDA) legislation, which seeks to enhance open finance by enabling financial institutions to share customer data, industry stakeholders are urging caution.

The Council has largely upheld the European Commission's proposal, advocating phased implementation to promote better data sharing. Proponents argue this will foster competition, enabling tailored financial products, streamlined loans, and improved access to finance for consumers and SMEs. With the framework set for negotiation with the European Parliament, the legislation aims to boost the sector's efficiency and consumer benefits.

However, major financial associations, including the European Banking Federation and Insurance Europe, have voiced concerns in a joint statement, calling for a more evidence-driven approach. They warn that without thorough scrutiny of FIDA's broader impact, the regulation could jeopardize consumer protection and the sector's competitiveness. The associations stress the need for further assessment to ensure FIDA delivers meaningful benefits to European citizens and companies, cautioning that hasty implementation may undermine its objectives.