From Open Banking To Open Finance: The Framework For Financial Data Access (FiDA)

Xenia Kalogirou of Elias Neocleous & Co discusses the rise of the concept of Open Finance as incorporated in the Framework for Financial Data Access

I) Overview

On 28 June 2023, the European Commission (EC) published a set of legislative proposals on payment services; on the much anticipated introduction of a digital euro; and on the sharing of financial data. These proposals aim to modernise the financial sector, align with the ongoing digital transformation, cultivate data-driven innovation and promote a competitive digital ecosystem. Simultaneously, they also seek to safeguard consumers' interests, ensure fair competition, and bolster security and trust.

Apart from the third Payment Services Directive (PSD3) and the Payment Services Regulation (PSR), the legislative proposals included a Framework for Financial Data Access (FiDA), also commonly referred to as the Open Finance Framework (OFF). FiDA is a flagship initiative of the EU Digital Finance