How FISPs Empower Data Holders, Data Users, and Consumers Under FIDA

As Europe moves closer to implementing the Financial Data Access (FIDA) framework, the roles of data holders, data users, and consumers are being redefined in a more collaborative and transparent financial ecosystem. At the center of this transformation is the Financial Information Service Provider (FISP)—a key player in ensuring seamless, secure, and compliant data-sharing.

In this blog, we’ll explore how FISPs enable innovation and build trust, while diving into the evolving responsibilities of data holders, data users, and consumers under FIDA.

To understand the role of FISPs, we must first define the responsibilities of the other stakeholders.

Key Responsibilities of Stakeholders Under FIDA

Data Holders: Custodians of Consumer Financial Data

• Who They Are: Insurers, investment firms, pension funds, credit institutions, and other related financial service providers that collect, store, and manage consumer financial data.

• Responsibilities:

  • Ensuring Secure Data Sharing: Data holders are required to implement FIDA-compliant APIs and high-security standards, ensuring only authorized parties can access relevant consumer data.

  • Providing Permission Dashboards: Data holders must give consumers real-time visibility and control over data-sharing permissions, fostering trust.

  • Compliance with Transparency Rules: They must clearly communicate how shared data will be used and ensure that consumers remain in control at all times.

Data holders must implement APIs and maintain secure technical interfaces. We talk more about the technical requirements for data holders in our previous blog post.

Data Users: Innovators in Data-Driven Finance

• Who They Are: Fintechs, wealth managers, payment processors, credit scoring agencies, robo-advisors, digital lenders, asset managers, insurance technology providers (InsurTechs), regtech firms, and other entities that leverage financial data to create, enhance, or deliver innovative financial services and products.

• Responsibilities:

  • Ensuring Data Use Compliance: Data users are responsible for accessing and processing data strictly in accordance with consumer permissions and adhering to FIDA’s guidelines on approved purposes and data security standards.

  • Adhering to Permitted Data Uses: Data users are obligated to access and use standardized financial data only for purposes explicitly approved by consumers and within the boundaries defined by FIDA’s regulatory framework. Any use outside these permissions is strictly prohibited.

  • Maintaining Data Security: Data users must adhere to stringent security protocols, ensuring consumer trust and regulatory compliance.

Consumers: Empowered Participants in Open Finance

• Who They Are: Individual consumers and businesses benefiting from shared financial data.

• Responsibilities:

  • Taking Control of Data: Consumers gain control over their financial data through permission dashboards, enabling them to manage, grant, or withdraw access as needed.

  • Advocating for Transparency: In the FIDA ecosystem, consumers play an active role in holding institutions accountable for transparent and fair data use.

For consumers, building trust around how their data is used is critical. Read more about addressing privacy concerns in FIDA in our blog post here.

How FISPs Bridge the Gaps Between Stakeholders

FISPs are vital in enabling collaboration between data holders, data users, and consumers. They act as trusted intermediaries to ensure smooth operations while balancing innovation and compliance. Here’s how FISPs facilitate the ecosystem.

For Data Holders

• Offer ready-to-use, secure APIs that simplify compliance with FIDA’s technical requirements.

• Provide guidance on implementing permission dashboards, enabling data holders to offer transparency to their consumers.

For Data Users

• Deliver streamlined access to data through standardized interfaces, reducing technical integration costs.

• Facilitate real-time data retrieval, enabling data users to focus on innovation rather than infrastructure.

For Consumers

• Ensure transparency by maintaining clear, easy-to-use tools for data-sharing permissions.

• Build trust by safeguarding consumer data through strict compliance with GDPR and DORA.

FISPs play a critical role in facilitating standardized data-sharing frameworks, such as Financial Data Sharing Schemes (FDSS). Learn more about how FDSS are shaping open finance in our previous blog post.

The Benefits of Collaboration Under FIDA

At the heart of the FIDA framework are Financial Information Service Providers (FISPs), who act as the crucial intermediaries ensuring seamless collaboration between stakeholders. By facilitating secure data exchanges, FISPs empower data holders, data users, and consumers to unlock the true potential of open finance. Their role is essential in building trust, streamlining operations, and creating a transparent ecosystem where every participant benefits.

Here’s how FISPs contribute to driving value for each group:

For Data Holders

• Simplified Compliance and Integration: FISPs enable data holders to adopt standardized APIs, reducing the complexity and costs associated with integration and regulatory compliance.

• Strengthened Consumer Trust: By providing secure and transparent data-sharing mechanisms, FISPs help data holders foster stronger relationships with their consumers, enhancing confidence in their operations.

For Data Users

• Easier Access to New Markets: Through standardized data-sharing frameworks facilitated by FISPs, data users can seamlessly access financial data across borders, accelerating their entry into new markets.

• Improved Service Capabilities: With access to accurate, real-time data through FISPs, data users can refine their offerings, developing personalized financial solutions while ensuring compliance with regulatory standards.

For Consumers

• Broader Access to Financial Solutions: FISPs ensure that consumers can benefit from a wider range of innovative financial products tailored to their needs.

• Enhanced Data Security and Control: FISPs ensure that the secure infrastructure supporting permission dashboards—provided by data holders—is fully interoperable and compliant with regulatory standards. This enables consumers to confidently control and monitor how their data is shared, ensuring it is accessed only by trusted and authorized entities.

Conclusion

The Financial Data Access (FIDA) framework marks a transformative shift toward a more collaborative and transparent financial ecosystem, with Financial Information Service Providers (FISPs) at its core. FISPs play a crucial role in bridging the gaps between data holders, data users, and consumers by providing secure, interoperable infrastructure for seamless data sharing. For data holders, FISPs simplify compliance with standardized APIs and enhance consumer trust through transparent mechanisms. For data users, they enable easier access to standardized data, unlocking opportunities for market expansion and innovation. For consumers, FISPs ensure their data remains secure, under their control, and accessible for personalized financial solutions. As FIDA continues toward full implementation, FISPs will be instrumental in driving collaboration, building trust, and enabling an inclusive financial ecosystem where every stakeholder benefits. InfraFiDA is here to help businesses navigate this transformation and thrive in the era of open finance.