BETTER FINANCE provided an initial feedback to the EC’s plans to create a system for accessing financial data (FIDA) to boost digital financial services by promoting competition. We suggest carefully considering the risks and benefits of opening up a financial data market using based on contractual, industry-led ‘schemes.’ FIDA proposes a change that would make it easier for financial companies to offer personalised (‘tailored’) deals to consumers. However ensuring suitability and stronger safeguards to avoid financial exclusion rare needed, wheareas concrete applications remain uncertain. It’s crucial to have rules in place to protect – aggregated – sensitive financial and personal data under strict limitations. The vagueness of schemes governance and the lack of prudential measures, voupled with potential market disruption and emerging offers distriution models need furher consideration and assessment.
First, FIDA should create a clear framework to make sure:
- People are clearly informed on the data they choose to share and their implications on offers (incl. via clear permission dashboards).
- The system follows GDPR rules.
- There are safeguards to prevent people from being excluded from financial services.
- Consumers have rights over their data ownership.
- People can ask for a review if they receive an automated offer and want human assistance.
— Upcoming: BETTER FINANCE full Policy review on FIDA —