FiDA: Defining the future of Open Finance
Around a cup of coffee and in PwC’s “The Payments Coffee Break” series, Anne-Sophie Morvan (Chief Commercial Officer, LUXHUB) and Philippe Förster (Partner & Payment Leader, PwC) discussed the upcoming transition from Open Banking to Open Finance, with a particular focus on FiDA (Financial Data Access Framework), a subject that has been much in the news recently in the financial services industry.
The LUXHUB CCO first articulated, “There was Open Banking until now with PSD2, just focusing on payment accounts. Now, we are really talking about Open Finance, meaning that there will be data such as Mortgage Data, pension data, insurance data… that could be accessed by various financial institutions beyond banks.”
New horizons for financial sector
As we navigate this transition from Open Banking to the broader horizons of Open Finance, FiDA emerges as a catalyst. It transcends traditional boundaries, bringing together a diverse array of financial institutions, including banks, insurance companies, payments institutions, and crypto assets providers. The potential for comprehensive data sharing, encompassing not only financial but also mortgage and insurance data, marks a pivotal shift. Anne-Sophie Morvan’s insights offer a glimpse into a future where financial data becomes a collaborative tool, fostering innovation and redefining the way institutions interact and strategize in the dynamic landscape of Open Finance.
The future trajectory of FiDA promises a more interconnected and innovative financial landscape. As regulatory frameworks take shape, the industry braces for a future where data sharing is extensive and responsibly managed. “Having a view of the wealth of an individual through Open Finance is a fantastic opportunity” underlined Anne-Sophie Morvan.
The role of the FiDA Permission Dashboard in Open Finance
The permission dashboard acts as a transparent interface, providing users with a comprehensive view of the entities to whom they have granted access to their financial data. This tool is designed to enhance customer control and understanding, especially in scenarios where individuals authorize financial institutions and financial information service providers (FISPs) to access their data. Anne-Sophie Morvan explained, “in the proposal published on June 28th, the permission dashboard is a dashboard provided by the data holder and made available to the end customer, giving him/her a real-time view on the different access rights he/she has granted, as well as the ability to withdraw some of these permissions”.
The goal is to empower customers with the ability to make informed decisions about their financial data, fostering a sense of transparency, control, and accountability in the Open Finance ecosystem.