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FiDA Regulation: Opportunities and challenges for banks and insurance companies

Technical contribution

January 9, 2025

With the Financial Data Access (FiDA) regulation, the finance and insurance industry is facing a far-reaching transformation. The EU aims to create a uniform "open finance" area that enables the secure and standardized exchange of customer data. This offers enormous opportunities for banks and insurance companies, but also requires extensive adjustments.

FiDA: What does this mean for banks and insurance companies?

FiDA obliges financial institutions to provide data in real time via standardized interfaces, subject to customer consent. This data ranges from basic customer information to transaction-related data and is to be made accessible to authorized third-party providers. The aim is to promote innovation, create greater transparency and enable customers to receive more personalized offers.

For banks and insurance companies, this means that they can use targeted analyses of this data to develop personalized products and services that are precisely tailored to the needs of their customers. On the other hand, access to external data offers the opportunity to optimize their own processes - for example through improved fraud management, more efficient claims processing or a more precise risk assessment.

Regulatory requirements for the industry

However, the introduction of FiDA also entails complex requirements for banks and insurance companies:

Data provision in real time: Standardized interfaces must be created to enable secure and efficient data transfer in real time.

Provide dashboards and consent management: Customers should be able to track and manage their data releases via a dashboard.

Ensuring data protection and security: A key challenge is to comply with the applicable data protection regulations in order to maintain customer trust.

Companies have 18 to 24 months after the regulation comes into force to implement these measures. This means that full implementation is expected by the end of 2026/beginning of 2027. The development and implementation of suitable solutions will be crucial in order to remain competitive.

Conclusion: FiDA revolutionizes the handling of financial data

FiDA stands not only for a regulatory change, but for a fundamental reorganization of how financial data is handled. For banks and insurance companies, it is an opportunity to take customer relationships to a new level, optimize processes and strengthen their market position through data-driven innovation. At the same time, the regulation requires forward-looking planning and comprehensive adjustments in order to meet both technical and organizational requirements.

Ready for the next step?

The future of the financial sector will be determined by data. FiDA offers you the opportunity to future-proof yourself now and benefit from a data-driven strategy. With Dataciders at your side, you can not only meet regulatory requirements, but also exploit the full potential of your data. Together, we create the basis for innovation, efficiency and long-term success.

Would you like to find out more? Contact us directly.