Introduction
Since the European PSD2 directive, Open Banking has become a reality: bank data can be shared between authorized actors, with the customer's consent.
But this transformation doesn't stop at the bank. It now extends to the entire financial sector: insurance, savings, investment, cryptoassets... And that's where the rules FIDA (Financial Data Access) come into play.
Adopted in 2024 and in the process of being implemented, IFAD aims to expand access to financial data to all services while ensuring the security, transparency, and digital sovereignty of European citizens.
FIDA, a major advance for Open Finance
An ambitious framework
Proposed by the European Commission in 2023 and adopted by Parliament in 2024, FIDA introduces a right of universal access to financial data, well beyond simple payment accounts.
The data concerned includes:
- Insurance (life, home, health...)
- Savings and investments
- Crypto-assets
- The credits
Main Objectives
- Giving consumers total control over their financial data
- Stimulate innovation by allowing new actors to access data with user consent
- Harmonize European rules to ensure security, transparency and Data sovereignty
IFAD raises concerns in the financial sector
Outcry from insurers
Insurance companies express strong concerns: security, digital sovereignty and competitiveness. They require gradual deployment, safeguards against non-European technology giants, and a limitation of the historical depth of shared data.
“France Assurers calls on the co-legislators to strengthen the draft FIDA regulation around three priorities: guaranteeing competitiveness, maintaining European sovereignty, and putting customers at the center of concerns.”
Their main concerns:
- Risks associated with data transfers outside the EU
- Loss of digital sovereignty, especially in the face of technological giants
- Need data security safeguards
- Fear of high costs and complexity
Strict transparency obligations
Data transfers to third countries
A strong provision: the European Commission must, after consulting the European Data Protection Board, attest to the legal validity and effective security of data transfer mechanisms to third countries.
Objective: ensure that European citizens' data is only transferred to jurisdictions that ensure an adequate level of protection, in accordance with the GDPR.
“Between each successive phase of opening access to financial and insurance data provided for under FIDA, the European Commission [...] will have to attest to the legal validity and effective security of the mechanisms for transferring data to third countries.”
Transparency on beneficial owners
Only operators who are transparent, responsible and aligned with European standards will be able to intervene in the context of access to financial data. National authorities may refuse or suspend the approval of entities that do not comply with their obligations to identify their beneficial owners.
Digitized identity, a prerequisite for FIDA
eIDAS 2.0: the essential foundation
The European Union has now made the full application of IFAD conditional on the effective entry into force of eIDAS 2.0, scheduled for November 2027.
Why? Because to share sensitive data, you have to be certain that:
- Who accesses the data from
- That consent is given in a clear and secure manner
- That the processes are interoperable across Europe
“In the absence of this text [eIDAS 2.0], the technical and legal conditions for identity management are not met.” France insurer
Remotely verified identity is becoming strategic
Remote identity verification and rapid reauthentication are becoming strategic issues. Innovative solutions, such as passive and active living detection, meet the safety and fluidity requirements requested by FIDA and eIDAS 2.0.
In this context, the solutions of remote identity verification And of strong and fast reauthentication become key.
Technologies like that of ShareID, which allow a user to prove their identity in 3 seconds via a simple smile, without storing personal data, provide a concrete response to the requirements of FIDA and eIDAS 2.0.
- Strong authentication resistant to fraud (such as phishing, SimSwap, Deepfake)
- Seamless experience (authentication in 3 seconds with a simple smile)
- Without storing personal or biometric data
- GDPR + FIDA + eIDAS compliance
Timeline and uncertainties
Adoption and application
- Definitive adoption expected in 2025 (some media mention a possible delay or suspension of the text).
- Progressive application : first the current data, then all the data concerned over several years.
- Condition: the entry into force of eIDAS 2.0 in November 2027.
A changing context
The financial sector is in the midst of negotiations: historical players fear complexity and costs, while startups (InsurTechs, FinTechs) see it as an opportunity for innovation and competition.
Conclusion
FIDA marks a major step forward for financial Europe: more open, more transparent, more connected. But this opening can only be done by relying on a reliable and interoperable digital identity.
Actors who are investing now in compliant, secure, and seamless remote identity solutions will be ready to seize this opportunity and build trust at the heart of Open Finance.
At ShareID, we believe that a simple customer journey can also be compliant, secure, and privacy-friendly. And that is what we are building, day after day, with our partners.
Are you preparing for your FIDA/eIDAS 2.0 compliance?
Learn how our instant authentication solution can help you secure access to financial data without compromising the user experience.
Contact us for a personalized demo.
.png)