Raoul Mulheims’ Post

The #FIDA regulation is anticipated to profoundly impact how financial institutions, encompassing both banks and non-bank entities, will be expected to offer structured, permissive access to their customers' data through digital interfaces. When #PSD2 came into force in 2019, most banks managing payment accounts that were in the scope of the Directive (i.e. accessible online) were already integrated into interbank networks and banks essentially needed to implement #APIs and #authentication systems to allow third parties to initiate payments and access transaction data, albeit in a restricted manner. With #FIDA however, there will be and entirely different set of challenges: much of the data within the scope of this regulation is not currently structured, stored, or prepared for sharing with any external parties. Therefore, the modifications necessary for current setups at #insurance companies, #investment firms, and other regulated data holders could be significantly more considerable. The challenges they are facing include not only bringing data into information systems capable of exchanging it with other systems but also transforming the data to meet the requirements and definitions that will be established by level 2 regulation and the future 'schemes' mentioned in the draft text. Additionally, there will be the need to effectively manage #access, #authentication, and permissions for customers and data users.