On 28 June 2023, the Commission put forward a legislative proposal for a framework for financial data access (open finance framework). The framework aims to establish clear rights and obligations to manage customer data sharing in the financial sector beyond payment accounts. The proposed regulation establishes rules on the access, sharing and use of certain categories of customer data in financial services. It also establishes rules concerning the authorisation and operation of financial information service providers. The proposed regulation will apply to following categories of customer data on:

1. mortgage credit agreements, loans and accounts, except payment accounts as defined in the Payment Services Directive (EU) 2015/2366, including data on balance, conditions and transactions;

2. savings, investments in financial instruments, insurance-based investment products, crypto-assets, real estate and other related financial assets as well as the economic benefits derived from such assets;

3. pension rights in occupational pension schemes;

4. pension rights on the provision of pan-European personal pension products;

5. non-life insurance products, except for sickness and health insurance products;

6. data which forms part of a creditworthiness assessment of a firm which is collected as part of a loan application process or a request for a credit rating.

The proposal aims to establish clear rights and obligations to manage customer data sharing in the financial sector beyond payment accounts, namely:

- possibility but no obligation for customers to share their data with data users (e.g. financial institutions or fintech firms) in secure machine-readable format to receive new, cheaper and better data-driven financial and information products and services (i.e. such as financial product comparison tools, personalised online advice);

- obligation for customer data holders (e.g. financial institutions) to make this data available to data users (e.g. other financial institutions or fintech firms) by putting in place the required technical infrastructure and subject to customer permission;

- full control by customers over who accesses their data and for what purpose 

- standardisation of customer data and the required technical interfaces

- clear liability regimes for data breaches and dispute resolution mechanisms 

- additional incentives for data holders to put in place high-quality interfaces for data users 

In the European Parliament, the Committee on Economic and Financial Affairs (ECON) is responsible for the file. On 19 July 2023, ECON Committee appointed MEP Michiel Hoogeveen as rapporteur. The Committee on Legal Affairs (JURI), the Committee on Internal Market and Consumer Protection (IMCO), and the Committee on Civil Liberties, Justice and Home Affairs (LIBE) have been proposed for an opinion. The JURI and IMCO Committes have decided not to give an opinion.  

On 13 December 2023, the rapporteur published his draft report. He welcomes the proposal and suggested modifications along the following main axes: 1. Enhancing customer trust; 2. Promoting innovation; 3. Improving interoperability and supervision. 

On 18 April 2024, the ECON Committee adopted its report for a harmonised framework for access to financial data at the EU level, with 43 votes to 1 and 5 abstentions. According to ECON Members, the framework should be established for the access of customer data processed by financial institutions across the financial sector beyond payment account data. Based on owner’s permission, their data would be made available in order to develop and provide tailor-made and data-driven financial products and services.

For smaller companies the access to data would be useful when attracting new customers, lowering costs and barriers of entry thus increasing competition and innovation for financial products and services.

Customers would decide how and by whom their financial data is used. The access should be based on customers’ explicit permission and data users would have to specify what they intend to make with them. The data could not be transferred to a third-party without permission. Moreover a consent could be withdrawn at any time and free of charge.

Financial data access scheme members, including data holders and data users, should therefore be required to agree on the contractual liability for potential data breaches, which foresees customer compensation in case data was misused, for instance if data was to be transferred to a third-party without the customer’s explicit permission.

Data related to sickness and health cover would be excluded from the scope, as well as confidential business data and undisclosed know-how. MEPs also decided that the large digital platforms designated as Gatekeepers pursuant to the Digital Markets Act should not be eligible to become financial information service providers 

The European Banking Authority (EBA) should establish a register of authorised financial information service providers, as well as financial data access schemes agreed between data holders and data users.

After the European elections 2024, on 12 September 2024, the new ECON Committee has appointed MEP Johan Van Overtveldt  (ECR, BE) as rapporteur. On 4 December 2024, ECON adopted the negotiating mandate with report for the interinstitutional negotiations. On 18 December 2024, the plenary confirmed the ECON negotiating mandate with the report, according to Rule 71.

On 4 December 2024, the EU Council adopted its general approach.

The file is among the pending proposals (Annex III) of the Commission Work Programme 2025, published on 11 February 2025.

References:

• European Parliament Legislative Observatory, Procedural file on Framework for Financial Data Access, 2023/0205(COD).
• European Parliament, Committee MEPs want to enhance customers’ control over their financial data, press release, 18 April 2024.
• European Commission, Proposal for a Regulation on a framework for financial data access, COM(2023)360. 
• European Commission, Impact assessment accompanying the proposal on financial data access, SWD/2023/224.
• European Commission, Summary of the impact assessment accompanying the proposal on financial data access, SWD/2023/230.
• European Commission, Framework for financial data access, website
• European Commission, Digital finance, website

Author: Stefano Spinaci, Members' Research Service, legislative-train@europarl.europa.eu