T3’s Post

Open Finance is approaching !! The Council has reached an agreement on a proposed framework for Financial Data Access (FIDA) 📊🚨🔥, marking the shift from open banking to open finance. Like in PSD2, financial institutions—including this time insurers—will be required to provide access to customer data, but only with the customer’s consent 💡🔥🤝. While this is an important step, it’s now up to the negotiations with the European Parliament 🚨🇪🇺📜. Let’s see how long those discussions take and what the final text will actually look like ⏳🔥🤔. The LHoFT - Luxembourg House of Financial Technology ABBL Spuerkeess ACA Luxembourg #FIDA

Want to understand what is Financial Data Access (#FIDA)? As of June 2023, the European Commission's Digital Finance Strategy has taken a significant step forward. The Financial Data Access (FIDA) legislation, a key component of this strategy, was announced with the goal of transforming the way financial data is accessed across the industry upon consent of the customer. The essence of this upcoming regulation is that it enforces Financial Institutions to share customer data on financial products (such as loans, mortgages, savings, investments, insurance and pension products) with third parties who want to use this data in their services. These third parties can be other Financial Institutions or Financial Information Service Providers (FISPs) who need to obtain a license. The financial data can only be shared when the customer, as the data owner, gives its consent to do so. The scope of FIDA includes financial data about consumers but also small and medium sized enterprises. This initiative builds on the progress made by Payment Service Directive 2 (#PSD2), which catalysed the Open Banking movement, and is further reinforced by #PSD3 and the Payment Service Regulation (PSR), strengthening the framework. FIDA is set to expedite the shift towards Open Finance, facilitating increased sharing of financial data beyond payment information. Want to know more - Our colleagues from PwC Nederland give a "to the point" explanation here: https://lnkd.in/eEReigH9 #paymentservices #financialservices #openfinance

🔍 DORA in Poland: Updated powers of the Polish Financial Supervision Authority 🔍 The draft Act on amending certain laws in connection with ensuring operational digital resilience of the financial sector, implementing the DORA Regulation, will establish several important changes that broaden the scope of supervision of financial entities. 🚀 Key Points: First and foremost, the Financial Supervision Authority (KNF) will be given the authority to supervise the compliance of the activities of financial entities identified in Article 5(6) of the draft act with the provisions of the DORA Regulation in relation to ensuring operational digital resilience compliance of the financial sector. In this respect, supervisory activities will primarily concern the categories of payment institutions, banks, brokerage houses, or investment fund companies indicated in the draft. 💼 What should supervised entities prepare for in particular? 1. The KNF will be given the authority to conduct inspections in the broadened scope relating to DORA. 2. Financial entities will be required to provide the KNF at least once a year with information on the number of new arrangements for the use of ICT services, categories of third-party providers of ICT services, the type of contractual arrangements, and ICT services provided and functions supported. 3. Financial entities will be required to inform the KNF in a timely manner of any planned contractual arrangements for the use of ICT services supporting critical or essential functions, and that a function has become critical or essential. 4. Entities selected by the KNF because of, among other things, a specific ICT risk profile, or because of a particular impact on the financial sector, will be required to conduct penetration tests targeted by threat analysis at least every three years, and then report the results of the tests to the KNF for approval. ✅ In Summary: The provisions of the amending law grant the FSA new powers to ensure that designated financial entities comply with the digital resilience standards set by DORA. #DigitalResilienceinPoland #FinancialSupervision #DORA #FinancialSector

Financial sector calls on EU policymakers to reassess the Financial Data Access (#FiDA) Regulation to ensure innovation, security, and competitiveness. Today, Europe’s insurance, banking, and asset management industries issued a joint statement urging co-legislators to uphold their commitments to boost European competitiveness. The signatories stress that the Financial Data Access (FiDA) Regulation should not be finalized before a thorough assessment of its impact across the entire value chain is completed. The statement warns that rushing into implementation without addressing key concerns could undermine both European competitiveness and data protection. The joint statement highlights the need for: 👉 Evidence-backed policymaking to prioritize customer benefits and market demand. 👉 Stronger safeguards for data privacy and security, ensuring new data-sharing entities (FISPs) are held to the same regulatory standards as financial institutions. 👉 Legal clarity to build a workable framework that drives Open Finance in Europe. While supporting the ambition to foster data-driven innovation, the signatories emphasize that any framework must carefully consider its broader impact on consumers, businesses, and the financial ecosystem. The statement was co-signed by the AFME (Association for Financial Markets in Europe), the European Association of Co-operative Banks, the European Banking Federation, EFAMA, WSBI-ESBG and Insurance Europe 📩 Ali-Ashraf Rajabli

The Financial Stability Board (FSB) has released a consultative report aimed at enhancing alignment and interoperability across data frameworks related to cross-border payments. This initiative is part of the broader G20 Roadmap for Enhancing Cross-border Payments, which seeks to tackle issues such as high costs, low speed, limited access, and insufficient transparency in cross-border transactions. Key recommendations: Balancing Regulatory Obligations: Address uncertainties in managing compliance with anti-money laundering (AML) and data privacy requirements. Promoting Standardization: Encourage the adoption of standardized data requirements and legal entity identifiers to facilitate smoother transactions. Facilitating Data Flow: Mitigate restrictions that hinder the cross-border transfer of payment data, while ensuring compliance with public policy objectives. Encouraging Innovation: Support technological advancements that can improve data-sharing processes and reduce friction in cross-border payments. Key highlights: Policy Recommendations: The FSB has proposed 12 recommendations focusing on four main areas: balancing regulatory obligations, promoting alignment and interoperability of data requirements, mitigating data flow restrictions, and reducing barriers to innovation. Establishment of a Forum: A proposed Forum will facilitate collaboration among public and private sector stakeholders to address frictions in data frameworks, aiming to enhance efficiency and safety in cross-border payments. Consultation Process: The FSB invites stakeholders to provide feedback on these recommendations by September 9, 2024, to refine the approach and ensure comprehensive coverage of the challenges faced in cross-border payments. This report serves as a foundational step towards achieving the G20's targets for 2027, fostering a more efficient and transparent cross-border payments system while respecting essential public policy objectives. Financial Stability Board (FSB) Bank for International Settlements – BIS #DigitalPayments #CrossBorderPayments #DataFrameworks

Open finance is reshaping the financial services industry, offering new opportunities for data-driven solutions and increased competition. With the EU’s Financial Data Access Regulation (FiDA), firms must act fast to stay ahead in this changing landscape. #OpenFinance #FiDA #FinancialServices #Innovation #EURegulation

Open finance is reshaping the financial services industry, offering new opportunities for data-driven solutions and increased competition. With the EU’s Financial Data Access Regulation (FiDA), firms must act fast to stay ahead in this changing landscape. #OpenFinance #FiDA #FinancialServices #Innovation #EURegulation

We're happy to see some great coverage for Roq - Quality Engineering like no other with Business Money today. The article discusses the greater investment needed ahead of the transformative ISO 20022 deadline. Take a look 👀

New Rules to Strengthen Resilience of UK’s Financial Sector "The Financial Conduct Authority, Bank of England and Prudential Regulation Authority have set out how they intend to use their new powers, having consulted widely and working closely with industry to inform the design of the regime. The new rules align closely with international standards and similar regimes, like the EU’s Digital Operational Resilience Act." https://lnkd.in/eGpPEcC5 Mohammed Gharbawi Tom Mutton Louise Eggett James Hotson Melvin Lopez Reuben Wales Ruth Griffiths #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Open finance is set to transform the EU financial sector, creating new opportunities for innovation and competition. With the EU’s Financial Data Access Regulation (FiDA), firms must adapt to a more integrated ecosystem or risk being left behind. Learn how this shift will reshape the industry and how firms can prepare. #OpenFinance #FinancialServices #FiDA