Financial establishments face upcoming obligations under FiDA
In the evolving landscape of Open Finance in Europe, smaller financial providers are grappling with the technical challenges posed by the Financial Data Access Regulation (FiDA). The successful implementation of FiDA, which is yet to be confirmed, hinges on the coming months [1].
The key technical hurdles for smaller providers encompass several aspects: developing appropriate and secure data access interfaces, managing distributed and diverse data sources, ensuring interoperability, implementing robust data protection and security measures, real-time mapping and monitoring of consent and data access activity, and professionalizing digital data management processes to meet transparency and compliance requirements [1].
Addressing these challenges requires a strategic approach. Leveraging third-party technology providers or Financial Information Service Providers (FISPs) authorised under FiDA, adopting standardized data formats and APIs, using cloud-based platforms and middleware, implementing automated consent management tools, and seeking phased implementation approaches are potential solutions [1][5].
One crucial aspect is flexibility in deadlines and implementation phases. Allowing smaller providers more time or staged compliance can significantly increase the success of FiDA. This flexibility enables providers to gradually build digital maturity and infrastructure, lowering entry barriers, fostering broader market participation and innovation, and reducing the risks of non-compliance due to rushed deployments or inadequate technical readiness [1][5].
Dana Wondra, a key participant in discussions about the future of the European financial data market, is one of the hosts of the show "Alles Legal - Fintech Law Compact", which provides an overview of FiDA and its implications for Open Finance in Europe. Alongside Frank Müller, Wondra discusses the potential of FiDA to create an open, secure, and fair European financial data market [2][3].
The complexity of technical requirements, flexibility in deadlines and implementation phases, and avoiding FiDA becoming a "paper tiger" are key concerns. As the implementation of FiDA progresses, experts like Wondra and Müller will continue to play a vital role in shaping the European financial data market [4].
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Of which, the strategic approach to addressing the technical challenges of Open Finance in Europe includes leveraging technology, such as partnering with third-party providers or Financial Information Service Providers (FISPs) that are FiDA-authorized. Meanwhile, flexibility in deadlines and implementation phases can significantly increase the success of implementing FiDA, thereby lowering entry barriers and fostering broader market participation and innovation.
