FiDA back in motion: from ambitious to workable

FiDA back in motion: from ambitious to workable

After months of silence, there are signs of renewed movement in the European Financial Data Access (FiDA) file. Since the trilogue negotiations stalled in June 2025, progress has been limited. The discussions between Parliament, Council and Commission did not lead to a clear final outcome. Recently, the European Commission published a new non-paper with proposed adjustments. The objective is clear: to restart the process and move towards a political agreement.

Political pressure: fewer rules, lower burden

The context in which FiDA is developing has changed. Calls for deregulation have become louder. Germany plays a key role in this. As the largest economy in the EU and one of the most influential Member States in the Council, its position has a direct impact on the feasibility of European regulation.

The position of Friedrich Merz, focused on reducing regulation and administrative burdens for companies, resonates across Europe, including in countries such as France and the Netherlands. This reflects the core criticism of FiDA: too complex, too broad and too burdensome for the market.

Germany’s stance effectively acts as a political anchor in the negotiations. Without movement from Germany, reaching agreement on FiDA is difficult to envisage.

From ambitious to workable: FiDA turns more pragmatic

The Commission’s revised approach marks a clear shift. FiDA is moving away from an ambitious and relatively heavy open finance framework towards a more pragmatic and market-oriented model.

Key elements include a narrower and less burdensome scope, reduced requirements to share historical data, greater protection of commercially sensitive data, phased and more manageable implementation, reduced bureaucracy, and more room for market-driven standards.

At the same time, tensions remain. Mandatory data sharing is still part of FiDA, which is exactly where much of the resistance lies. In addition, FiDA introduces another regulatory layer on top of existing frameworks such as PSD2 and GDPR.

What is changing?

The non-paper introduces a series of targeted adjustments to make the framework lighter and more workable.

1. Narrower Scope
The scope is reduced by excluding certain entities and datasets, such as credit rating agencies, large corporates and smaller financial firms. Further exclusions are being considered, including small insurance intermediaries. This reduces complexity and compliance burden.

2. Limited Requirements for Historical Data
Requirements to share historical data are being limited. Instead of broad datasets over long periods, a phased approach with a shorter look-back period is considered, for example two years. Terminated contracts are often excluded. This lowers costs and reduces privacy concerns.

3. Protection of Proprietary Data
Only data that has not been substantially processed falls within scope. This protects enriched or proprietary data and helps preserve competitive advantage.

4. Market-Driven Standards and APIs
The development of standards and APIs is partly delegated to the market via European standardisation organisations. At the same time, detailed EU-level obligations are reduced. This increases flexibility and reduces top-down regulation.

5. Phased Rollout Over Four Years
FiDA will be rolled out in three phases over approximately four years. Data sharing schemes are set up first, followed by mandatory data sharing. After each phase, the Commission will evaluate progress and may adjust the next phase. This lowers implementation risks and improves manageability.

6. Rejection of a Purely Demand-Based Approach
An alternative approach where data would only be shared if there is proven market demand is explicitly rejected. This prevents fragmentation across Member States and ensures that customer rights remain central.

7. The Role of Big Tech
The role of large technology companies has become a central topic. Options include restricting access to data or limiting licensing. There is no consensus yet, but the issue is clearly on the table.

8. Streamlined Licensing
The licensing process for financial information service providers is simplified, including reuse of existing PSD2 information and fewer duplicate procedures. This reduces administrative burden.

9. Data Holders as Data Users
An important principle remains unchanged. Data holders can also access data from others, subject to customer consent. This means traditional financial institutions become both data providers and data users.

Strategic implications for financial institutions

Although the revised FiDA model is becoming lighter, the strategic implications remain significant. FiDA is not simply a compliance exercise. It represents another major step towards data-driven financial ecosystems.

Even though FiDA is still evolving politically, financial institutions should already begin assessing their readiness.

Key focus areas include:

  • reviewing enterprise data architecture,
  • assessing API maturity and interoperability,
  • strengthening consent and identity management,
  • evaluating data governance frameworks,
  • and identifying proprietary versus shareable datasets.

The revised framework also creates potential opportunities like new data-driven services, personalised financial products and future monetisation opportunities around customer-consented data access.

Early preparation can help firms reduce future implementation costs, avoid fragmented transformation initiatives and position themselves strategically as Open Finance ecosystems mature.

Conclusion: FiDA is not abandoned, but it is being recalibrated. The European Commission is moving towards a more pragmatic approach that prioritises feasibility and political support.

The revised framework significantly reduces complexity and implementation burden for market participants. However, the core principle of mandatory, standardised financial data sharing remains unchanged.

This means the strategic direction of travel is still clear: Europe continues to move towards Open Finance.

Institutions that treat FiDA purely as a compliance topic risk missing the broader structural transformation towards interoperable.

As the regulatory landscape continues to evolve, firms should use the current transition phase to assess their strategic positioning, strengthen their data capabilities and prepare for future Open Finance operating models.

At X Group, we support financial institutions in translating regulatory change into actionable business and technology strategies – from data and API readiness assessments to Open Finance target operating models and implementation roadmaps.

Bei Thede Consulting unterstützen wir als Teil der Projective Group Finanzinstitute dabei, regulatorische Veränderungen in umsetzbare Geschäfts- und Technologiestrategien zu überführen – von Data- und API-Readiness-Assessments bis hin zu Open-Finance-Target-Operating-Modellen und Implementierungs-Roadmaps.

Frequently Asked Questions about FiDA (FAQ)

What is FiDA (Financial Data Access)?

FiDA stands for Financial Data Access and refers to an EU regulatory framework designed to govern access to and sharing of financial data. The goal is a European Open Finance ecosystem in which customers can share their financial data with their consent.

What is changing about the FiDA regulation in 2025/2026?

The European Commission is realigning FiDA in a more pragmatic direction: a narrower scope, reduced requirements for historical data, stronger protection of proprietary data, market-driven standards, and a phased introduction over approximately four years.

How does FiDA differ from PSD2?

While PSD2 primarily governs access to payment account data, FiDA extends data access to a significantly broader range of financial products — such as savings, investments, insurance, and loans.

What should financial institutions do now?

Institutions should assess their data architecture, API maturity, consent and governance processes at an early stage in order to reduce implementation costs and position themselves strategically in the Open Finance market.

We translate complexity into strategy: Our Payment 360° Workshop

FiDA is part of our Payment 360° Workshop alongside current payment topics such as the digital euro, EUDI Wallet, and PSD3. The focus is on finding concrete answers: Which payment developments are truly relevant to your portfolio? How do you evaluate different scenarios and timelines? And what strategic fields of action can be derived from them? The format: half-day, focused on your specific situation, with an outside-in perspective rather than theory. The goal: a clear assessment of market developments in the context of your current portfolio and ambition level — so that complexity becomes an actionable strategy.

Eike Maybaum

Carolin Peters

Posted on , updated on by Sophia Kühner in Categories Payment

Our Payment 360° Workshop

The payments landscape is undergoing massive transformation. Increasing regulation, AI influence, and new infrastructures are raising complexity and presenting market players with unprecedented challenges. Initiatives such as EPI/Wero, the Digital Euro, EUDI Wallet, and PSD3/PSR are fundamentally questioning established business models. In our Payment 360° Workshop, we analyze together which payment developments specifically impact your business model and where you need to act now.

Holistic view of payment trends

Our exclusive half-day Payment 360° Workshop is individually tailored to your company and your specific challenges. We explore current payment developments together and analyze their implications for your business model. Our experts guide you through the latest trends and work with you to determine how you can position yourself optimally.

Your Value

  • Relevance over theory: Payment developments contextualized specifically for your portfolio design
  • Depth on demand: Modular structure enabling deeper dives into topics such as profit boosters and fraud management
  • Concrete steps: Jointly developed action areas as the foundation for your strategic roadmap

Our Approach

  1. Preliminary discussion to clarify strategic direction and individually pre-select trends and additional focus topics
  2. Expert presentation on current payment trends and developments – tailored to your focus areas
  3. Joint assessment of relevant developments in the context of your payment strategy and portfolio positioning
  4. Derivation of strategic action areas with clear direction and concrete recommendations

We look forward to supporting you in shaping tomorrow’s payments landscape and positioning you for future success.

Schedule an Appointment

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Posted on , updated on by Sophia Kühner in Categories Payment

Verification of Payee – Now What?

Since October 2025, Verification of Payee (VoP) became mandatory across Europe. Many companies used the option to opt-out – an option that is temporarily possible and includes risks of liability shift. Furthermore, VoP creates several opportunities and benefits for corporates to improve their business and make it more secure. To leverage benefits a clear strategic and implementation path is crucial!

Our half-day workshop gives you clarity and a practical roadmap to act immediately. In just 4 hours, you’ll move from uncertainty to a structured approach for VoP implementation.

Your Key Benefits of Verification of Payee

  • Improve the quality of your supplier’s data via creditor IBAN check and setup verification of new creditors – also outside the actual payment flow
  • Improve the quality of your SDD mandate data to assure money collection processes are working correct
  • Improve process efficiency through early detection of data discrepancies, which saves time and resources by eliminating costly corrections and manual checks
  • Improve your fraud prevention by adding VoP checks on payment preparation and execution with significant value or increased risk
  • Improve your client onboarding and KYC processes by applying via usage of VoP as additional check when onboarding clients, thus ensuring accurate, non disputable data and verified client records

Workshop Topics (4-5 hours)

  • Understand regulations and obligations under VoP including recent implementation rules
  • Learn more about the specific opportunities and benefits arising from VoP for your company
  • Conduct a readiness assessment incl. data prep. and usage, internal systems, external landscape and dependencies, process check, training and communication strategy
  • Outline an implementation roadmap and define next steps

With decades of experience in payments and methodical excellence, we are your trusted partner for Verification of Payee, ensuring seamless and secure implementation in your company.

Are you interested? Please feel free to contact us:

Learn more and schedule an appointment.

Eike Maybaum

Simon Zapp

Or just leave your contact details and download the workshop teaser here:

Posted on , updated on by Sophia Kühner in Categories Industry, Payment tagged Tags , , , , , ,

The Digital Euro Update

The digital euro will fundamentally transform the European payments landscape. For banks and payment service providers, this means: now is the right time to prepare strategically for the upcoming changes. In our teaser paper, we highlight the key elements of the European Commission’s legislative proposal, outline the strategic challenges for financial institutions, and show how banks can successfully implement the digital euro.

ECB Decision on the Digital Euro: October 2025 as a Milestone

The European Central Bank (ECB) has announced that it will decide on the introduction of the digital euro in October 2025, following the completion of the current two-year preparation phase. Although a concrete launch date has not yet been set, banks and payment providers should not underestimate the potential impact of an implementation that, according to the ECB, could begin as early as 2028. As a legal currency, the digital euro will have to be offered mandatorily—both on the issuing and acquiring sides. Waiting or hesitating is therefore not a viable strategy.

Our teaser outlines why banks must prepare now for the digital euro and how they can position themselves strategically within their existing payment strategies.

Regulation of the Digital Euro

Key Challenges for Banks

Introducing the digital euro will entail significantly higher effort for banks than previous payment innovations. Similar to international card schemes such as Visa, Mastercard, or Wero (from the European Payments Initiative), the implementation and operation of the digital euro will be governed by an extensive rulebook. In addition, participating institutions will need to set up a new technical infrastructure, including the transfer of euro to digital euro and vice versa. They will also need to maintain separate digital euro accounts, increasing administrative complexity.

However, banks will not be able to pass these costs directly to their customers. According to the European Commission, so-called “basic services”—including account maintenance, euro-to-digital-euro transfers, and digital euro transactions—must be offered free of charge. The proposal also foresees the issuance of physical payment cards to prevent the exclusion of non-digital users.

Revenue Models and the Risk of Margin Pressure

Of course, the legislator must ensure the economic attractiveness of the digital euro for all market participants. However, this attractiveness will be strongly influenced by regulatory measures. The following transaction-based revenues will be generated for E-Commerce and POS transactions:

  • Revenues on the issuer side (banks): These will primarily stem from the Inter-PSP Fee – an ad valorem fee paid by the acquirer to the customer’s bank, comparable to the interchange fee. This fee is expected to be regulated by the ECB, similar to the interchange fee.
  • Revenues on the acquirer side: Revenues will mainly be generated through the Merchant Service Charge (MSC) – an ad valorem fee paid by merchants to their acquirers. Unlike current payment schemes, the MSC will also be subject to regulation.

The regulated nature of the Inter-PSP Fee and the Merchant Service Charge creates the risk of a “race to the bottom,” which could, in the long term, lead to significant margin pressure and declining transaction revenues on both the banking and acquirer sides.

For further information on the cost and revenue implications of the digital euro, especially from a banking perspective, please refer to our teaser paper.

Our Teaser also Covers:

  • Key legislative aspects and their implications for banks
  • The impact of the digital euro on issuer revenues and potential strategic responses
  • An illustrative business case for issuers
  • How banks can position themselves and the benefits of such positioning
  • How a strategy and implementation project for banks could be structured

Inaction Is Not an Option

Delaying preparation for the digital euro puts issuers and acquirers at risk of non-compliance with legal requirements, cannibalization effects from an unaligned payment strategy, and the danger of falling behind competitors.

Since banks and acquirers will be obliged to participate in the digital euro, they should define their strategic approach now. Our analysis highlights the key criteria that banks need to evaluate and weigh when shaping their individual digital euro strategy, including aspects such as cost leadership, customer centricity, and time-to-market.

Now is the time to set the strategic course. We would be pleased to engage in a personal discussion to exchange ideas and explore the next steps together.

Jens Hegeler

Dr. Carlos Nasher

David Skrobski

Posted on , updated on by Sophia Kühner in Categories Payment

FiDA at a Crossroads

With FiDA (Financial Data Access), the EU is facing a pivotal step: moving from Open Banking to Open Finance. The new framework is intended to give consumers and businesses greater control over their financial data while simultaneously driving innovation in the financial sector. However, there are also challenges: data protection, fair competition, and the handling of Big Tech spark controversial debates. This article examines the opportunities and risks of FiDA and highlights how Privacy Enhancing Technologies (PETs) could become a key tool in reconciling innovation with data privacy.

Framework for Access to Financial Data

FiDA, which stands for Financial Data Access, marks the next step for the EU in its transition from Open Banking to a broadly applicable framework for Open Finance. While the rules under the Payment Services Directive 2 and 3 (PSD2 and PSD3) primarily focus on access to payment account data, FiDA almost covers the entire financial spectrum: loans, savings, investments, insurance, mortgages, pensions, and crypto-assets.

The core principle of FiDA is that consumers and businesses are the owners of their financial data, which may be held by various financial institutions. They can share this data with third parties, known as data users, through a Financial Data Sharing Scheme, but only with explicit consent. To access consumer and business data, data users must hold a Financial Information Service Provider (FISP) license. Financial data is accessible only with this license and with the customer’s consent. The scheme enables standardized, real-time data exchange.

Consent for data sharing is given by the customer via the dashboard of their respective financial institution. The simple and secure transfer of data aims to foster innovation and competition while supporting the development of new, personalized financial products and tailored solutions. This gives consumers more control and greater choice.

FiDA also introduces a new regulation allowing data holders to charge a fee for the use of their data, providing them with the opportunity to generate revenue by sharing their information.

Schematic illustration of FiDA

Ethics and Data Protection as a Clear Compass

Financial data is highly sensitive, as sharing it directly affects privacy, can increase financial vulnerability, and in extreme cases even compromise physical security. These risks must be carefully considered in the legislation. Political resistance from individual EU member states further complicates implementation, and the financial industry has already expressed concerns about FiDA.

Designing FiDA therefore requires a delicate approach: clear rules if necessary, yet restraint to avoid stifling innovation. Ethics and data protection are central to FiDA’s development.

In a joint position paper, the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM) emphasize that clear and robust rules are necessary to ensure fair competition. Data sharing should occur only under the following conditions:

  • with the explicit, informed consent of customers
  • with clear agreements on purpose limitation and data minimization
  • with protective measures against misuse and unwanted profiling

Both organizations stress that FiDA has no chance without strong consumer trust. Such trust arises not only through laws but also through technological safeguards that structurally protect privacy.

Regulatory Pressure and National Caution

One of FiDA’s greatest challenges stems from concerns over excessive regulatory pressure. Several member states, particularly France, Germany, and the Netherlands, have indicated a cautious approach to the regulation’s scope. A framework that is too broad could impose high compliance costs, especially on smaller market participants. At the same time, few concrete market opportunities have emerged, increasing uncertainty.

This cautious stance has led to limitations in the current draft legislation. According to an informal diplomatic document from May 16, 2025:

  • Data older than ten years, as well as data from terminated contracts, should be excluded from mandatory access.
  • The scope should be limited to natural persons and small and medium-sized enterprises (SMEs). Large companies are explicitly excluded.

While these limitations simplify implementation, they reduce FiDA’s innovation potential. Important datasets are excluded, which can significantly disadvantage fintechs, insurance companies, and data-driven SMEs, for example:

  • Credit information services cannot develop long-term risk models for mortgages over 20–30 years.
  • Insurtechs lack historical claims data to model rare but severe risks.
  • SMEs using AI models for forecasting or fraud detection lose access to deep datasets that reveal long-term trends.
  • Providers in the green finance sector are unable to analyze long-term energy or investment patterns to assess sustainability.

France has also intensified diplomatic efforts to adapt the regulation, expressing concern that FiDA could act as a Trojan horse for global tech giants. A framework intended to empower consumers, SMEs, and fintechs could, in practice, facilitate the entry of international tech giants into Europe’s financial markets. Germany and the Netherlands share these concerns, with the Netherlands also emphasizing the burden on banks and regulators.

Radical Cut: Excluding Big Tech

This concern fuels further debate. Under the current proposal, so-called gatekeepers, as defined in the Digital Markets Act, would be excluded from obtaining a FISP license. Critics argue that while this measure may be effective against Big Tech, it could simultaneously stifle innovation and disadvantage consumers.

The Computer & Communications Industry Association (CCIA) Europe stated in a letter to the EU Commission that this exclusion:

  • Is not proportionately justified
  • Unnecessarily hinders innovation
  • Takes away consumers’ right to choose which providers they trust with their data

While preventing market dominance is a valid goal, it is questionable whether a blanket exclusion is the right approach, especially in a market that relies on diversity.

Privacy-Enhancing Technologies (PETs) as a Foundation

A crucial tool for balancing innovation and data protection are privacy-enhancing technologies (PETs). These technologies enable data to be processed or analyzed without exposing the underlying information. Examples include:

  • Homomorphic Encryption: Enables calculations directly on encrypted data without decrypting it first.
  • Secure Multi-Party Computation (SMPC): Multiple parties perform joint calculations without full access to each other’s data.
  • Differential Privacy: Protects individuals by adding statistical noise to datasets to prevent inference.
  • Federated Learning: AI models are trained locally at the data source, so data does not need to be centrally shared.

PETs make FiDA’s core promise achievable: data-driven innovation while maintaining privacy. They allow strict data minimization, insights without revealing raw data, and a technical implementation of GDPR principles.

According to the Dutch Central Bank (DNB) and AFM, PETs should be considered mandatory, particularly for highly sensitive data such as pensions or credit information. Where laws set clear boundaries, PETs provide building blocks to reduce risk, build trust, and give developers freedom for creativity and competitiveness.

Balancing Ambition and Caution

Careful drafting of the final legislation highlights both FiDA’s complexity and its far-reaching impact on the financial industry. The legislation must strike a balance between:

  • Ambition in expanding data access, innovation, and competition
  • Caution in handling sensitive data and market power
  • Flexibility in integrating future innovations without creating lasting risks to privacy or security

In practice, this requires ongoing dialogue among policy makers, regulators, market participants, consumer organizations, and technology providers.

2025: Make-Or-Break Year or Another Stalemate?

FiDA is at a critical turning point. Trilog negotiations between the Commission, the Council, and the Parliament are expected to produce a final draft this year. Early contours of FiDA are emerging, but many central questions remain unresolved. It is also unclear whether an agreement will be reached in 2025 and when FiDA will ultimately take effect.

What is certain is that the outcome of the negotiations will determine whether FiDA becomes a strong instrument for Open Finance or a cautious compromise that preserves existing structures.

Next Steps for Proactive FiDA Implementation

With the upcoming FiDA regulation, banks, insurance companies, and other service providers must quickly assess its impact on their organizations and business models to ensure compliance and capture new opportunities.

The following measures support a structured approach to FiDA:

Awareness & Positioning Workshop

Understand and share the impact of the FiDA regulation, and define the ambition you want to achieve.

Ideation Session

Create, explore and research the new business opportunities that are within reach.

Gap Analysis

Investigate the extent of the impact of FiDA on compliance, data management, and organization.

This approach helps banks, insurance companies, and other service providers gain clarity on opportunities and challenges, enabling them to leverage FiDA actively and proactively.

It is beneficial to address FiDA at an early stage to uncover opportunities and prepare accordingly. The experts at Thede Consulting, part of the Projective Group, support you with workshops, analyses, and practical advice – tailored to your organization.

Did You Know? – Our Workshop #NextGen Payments

FiDA is part of our new workshop “NextGen Payments: Revolution or Evolution by 2030?”. In this tailored session, we explore how future drivers such as digitalization, regulation, and cybersecurity affect your business models and develop individualized solutions together. More information can be found here.

Eike Maybaum

Philipp Widua

Posted on , updated on by Sophia Kühner in Categories Payment tagged Tags , , , , , , , , , , , , ,

EUDI Wallet and eIDAS 2.0

The European Union is on the verge of launching the EUDI Wallet, a trusted digital identity framework that will soon become mandatory across all member states. For banks and financial institutions, this isn’t just another compliance requirement, it is a transformative shift in how customers will authenticate, transact, and share data. Those who prepare early can reduce regulatory risk, streamline operations, and seize new business opportunities, while late adopters risk being left behind.

The Future of Digital Identity in the EU

In 2024, the European Union introduced eIDAS 2.0, a revised regulation on electronic identification and trust services that is fundamentally reshaping the regulatory landscape for digital identity and trust services across Europe. eIDAS 2.0 officially came into force in May 2024, marking a significant milestone in the EU’s digital transformation journey. The overarching goal of eIDAS 2.0 is to provide every EU citizen and business with the means to securely identify themselves and share verified credentials online, thereby fostering a seamless digital single market.

At the heart of this transformation is the European Digital Identity Wallet (EUDI Wallet), a secure, user-centric solution for managing digital credentials and enabling trusted transactions throughout the EU. By December 2026, each EU member state is required to offer at least one EUDI Wallet, ensuring broad accessibility for citizens and businesses. Furthermore, by December 2027, public and regulated private sector entities – including banks and financial services – must accept the EUDI Wallet for identification and authentication purposes.

The EUDI Wallet is designed to support a wide range of use cases, such as accessing government services, opening bank accounts, making payments, and digitally signing documents. The ecosystem is set to expand further with an amendment expected in Q4 2025, introducing a dedicated EU Business Wallet (EUBW) for organizational credentials. The EUBW will further broaden the scope and utility of the EUDI Wallet ecosystem.

eIDAS 2.0 and EUDI Wallet

How the EUDI Wallet will Impact Banking and Financial Services

Mandatory Acceptance and Integration

By 2027, banks and financial service providers will be legally required to accept the EUDI Wallet for key processes, including customer onboarding (KYC/KYB), payments (with Strong Customer Authentication, SCA), and digital signatures. This mandate is not only a compliance obligation but also serves as a catalyst for innovation and operational efficiency within the financial sector.

KYC and KYB in Customer Onboarding

The EUDI Wallet streamlines Know Your Customer (KYC) and Know Your Business (KYB) processes by enabling the secure, standardized exchange of verified digital credentials. Customers can open bank accounts remotely, using the EUDI Wallet to share only the necessary information with explicit consent and minimal friction. This approach reduces onboarding costs, improves data quality, and enhances the overall customer experience.

Payments and Strong Customer Authentication (SCA)

For payments, the EUDI Wallet introduces a unified, high-assurance authentication method. Banks must facilitate Strong Customer Authentication via the EUDI Wallet upon payer request, supporting both card-based and account-based transactions. This not only fulfils regulatory requirements under (expectedly) PSD3 and eIDAS 2.0 but also reduces fraud and enables innovative payment experiences such as “Fast Checkout”.

Digital Signatures and Consent Management

The EUDI Wallet supports legally binding digital signatures and robust consent management. It allows customers to authorize data sharing and transactions with full transparency and control. These capabilities are particularly relevant for loan agreements, account servicing, and other high-value interactions.

Opportunities and Challenges for Banks and Financial Services

The EUDI Wallet offers significant benefits for financial institutions, including fully digitized, automated onboarding and servicing processes. It enhances security, reduces fraud, and streamlines compliance with eIDAS 2.0, PSD3/PSR, and AML regulations. Additionally, the EUDI Wallet enables the development of new, identity-enriched services and business models, providing a competitive edge for early adopters.

Opportunities for Banks

However, the transition to the EUDI Wallet is not without challenges. Financial institutions must adapt to evolving technical standards, integrate with potentially 27+ different national wallets, and navigate overlapping regulations such as eIDAS 2.0, PSD2/3, and AML.

How Banks and Financial Services need to prepare now

To prepare for and leverage the EUDI Wallet, financial institutions should adopt a strategic, multi-faceted approach:

Strategic multi-faceted approach

1. Market Positioning and Business Model Innovation

Financial institutions should explore new business models that leverage verified digital identities, such as instant lending, cross-border account opening, and personalized financial services. Early adoption positions banks and financial services as trusted innovators and enables competitive advantages.

2. Technical and Operational Readiness

Institutions should integrate EUDI Wallet support into onboarding, authentication, and payment flows to ensure seamless customer experiences across all channels. Optimizing resources by clearly defining roles and responsibilities, avoiding duplicate investments, and aligning with evolving technical frameworks will further support a smooth transition.

3. Compliance and Risk Management

Aligning existing KYC/AML processes to EUDI Wallet requirements is crucial for identifying overlaps and gaps. Legal and customer communication frameworks should be updated to reflect new consent, data protection, and authentication mechanisms. Ongoing monitoring of regulatory developments e.g., the upcoming amendment for the EUBW, PSD3, and AML will help ensure compliance and interoperability.

4. Customer Education and Support

Developing comprehensive customer education programs is vital to drive adoption and build trust in the EUDI Wallet. Updating customer support channels and staff training will ensure that wallet-related queries and issues are handled effectively.

Your Partner for the EUDI Wallet Transition

Thede Consulting, part of the Projective Group, supports financial institutions in the transition to eIDAS 2.0 and to fully leverage the opportunities of digital identities such as the EUDI Wallet. Together with our clients, we develop strategies that consider both the business potential of the EUDI Wallet and its regulatory requirements. We create a clear market positioning for our clients and to anchor future-oriented topics early on within their organizations. We pursue a holistic approach that reaches from strategy to implementation and enables sustainable differentiation in the competitive landscape.

Start prepared into the EUDI Wallet era and future-proof your business together with us.

Do you have further questions about the EUDI Wallet and the implications for your organisation? Feel free to reach out to our experts for further information.

Please also see our article on The Paypers.

Dr. Carlos Nasher

Simon Wallner

Posted on , updated on by Sophia Kühner in Categories Payment tagged Tags , , , , , , ,

Workshop NextGen Payments: Revolution or Evolution by 2030?

Discover the future trends in our exclusive workshop. We will show you how the future drivers of digitalization, regulation and cyber security will affect your business models and develop individual solutions with you.

Payment services are subject to constant change, which has accelerated even further in recent times. They are reflected in the future drivers of digitalization, regulation and cyber security. As a bank and financial services provider, it is now crucial to think ahead and prepare for the future. What impact will these future drivers have on your business model?

Our exclusive “Next Gen Payments” workshop is customized to your company and your challenges. Together, we explore the future drivers and analyze their impact on your company. Our experts will guide you through the latest trends and show you how you can position yourself for success.

Your Benefits

  • Identification of current trends and relevant developments for your company
  • Evaluation of economic efficiency, opportunities and risks
  • Development of an individual strategic roadmap for the enhancement of your business models

Workshop Topics (4-5 hours)

  • Keynote speech by our experts “Payment in the triangle between Regulation, Digitalization and Cyber Security”
  • Collaborative impact analysis on your current business models
  • Identification of strategic and operational activities and the relevant fields of action

We look forward to supporting you in shaping the payment of tomorrow and enabling you and your business for the future.

Are you interested? Please feel free to contact us:

Learn more and schedule an appointment.

Andre
Standke

Jens
Hegeler

Dr. Carlos
Nasher

Eike
Maybaum

Posted on , updated on by Sophia Kühner in Categories Payment

AI Myths vs. Reality: The Truth Behind the Hype

In the fast-evolving world of artificial intelligence, confusion often reigns. While AI promises transformative potential, understanding its true value – especially in the context of financial services – requires separating fact from fiction. Here, we debunk the most pervasive myths, offering clarity and actionable insights for financial institutions.

Myth #1: AI Is a One-Size-Fits-All Solution

Many businesses mistakenly believe that AI can be applied universally, or that a product exists that is the magic bullet. The truth is, the success of AI depends on aligning the right tools with specific business challenges, whether it’s reducing costs, enhancing customer experience, or driving revenue. Financial services organisations must tailor their AI strategy to their unique needs and goals.

Myth #2: AI Is a Standalone Solution

Some still believe that AI operates in isolation, an autonomous entity capable of transforming entire systems on its own. In reality, AI must be embedded within an organisation to work alongside people and other technologies to help transform processes. Effective AI implementation requires thoughtful integration into the broader operational model, ensuring smooth collaboration between AI and human expertise.

AI in Action

As specialists in Financial Services, we have deep expertise in helping our clients to identify, navigate and implement AI use cases. In the Projective Group we have already worked with several companies in the European financial services sector to deliver AI success stories. There are obvious tasks where AI can be of great benefit. Here is a snapshot of where we see AI being successfully used in the market.

  1. Eliminating errors and ‘waste’: Across the international payments networks, there remains a relatively high proportion of failed transactions. In general terms, the potential exists to integrate learning agents to the hardware / software solutions to reduce or even eliminate such errors. Such tools could start with basic, rule-based error-checking. Over time, they can learn the local patterns and the flag those that fall outside those boundaries. In a fully-fledged implementation, the tools could suggest remediation and even be given (limited / controlled) capabilities to auto-correct. We built a prototype of this capability for SWIFT.
  2. Simplify Reporting: Financial services companies have huge reporting requirements. Many employees spend their days compiling, amending, and rewriting reports. AI can help reduce the duplication of tasks and simplify processes. It can even predict how data in these reports can be used. AI can explain complex report content and remove duplication. Moreover, it can significantly speed up large-scale data quality issues through classification, corrections, and processing unstructured text. The cost reduction and revenue generation benefits of this are easy to spot.
  3. Credit Risk Models and Fraud Detection: Banks are already successfully using AI to assist them in activities that range from the creation of credit risk models through to fraud detection (with a reduction in false-positive rates).
  4. Read, Summarize and Create Code: AI applications can read, summarise and create programming codes (e.g. in Cobol), but also eliminate technical legacy. This enables companies to better understand how their platforms work and how they can make better use of them.
  5. Chatbots (LLMs): Chatbots are invaluable research tools and can take on a huge amount of the role of your customer services department. They are good at summarising legal documents and never tire of completing onerous KYC and AML checks. We have used AI to build a chatbot for one client.

The development of AI is progressing rapidly – what is cutting-edge differentiator today becomes a commodity feature tomorrow. The toughest part of any initiative is moving from PoC to production, where regulatory, security, and scalability challenges arise. Leaning on established vendors for certifications and support can help, as can a focused AI development strategy. ‘AI’ may be the future, but it is not a miracle cure. Your company will still have to consider risk factors, the cost of adoption and the unavoidable fact that not everyone has the skills to use it effectively.

We can help to structure and implement a realistic and clear AI strategy. A strategy that will allow you to use artificial intelligence to deliver real value.

This article was first published in the Payment & Banking white paper titled “AI Use in the Payment Industry.”

Dr. Carlos Nasher

Sophia Kühner

Posted on , updated on by Support Support Team in Categories Payment tagged Tags , , , , , , , , , , , , , ,

TC-Whitepaper ‘Payments in Change: Where is the journey heading?’

The payments industry is on the brink of monumental change. Key drivers – digitalisation, regulation, and cyber security – are not only adding layers of complexity to the current landscape but also intensifying uncertainty about what lies ahead. In our latest whitepaper, we explore the prevailing trends within the payments sector and outline five potential scenarios for the future of payments.

The three future drivers of the payments industry

While cash is slowly but surely losing its dominant position, innovations such as the digital Euro, embedded finance solutions, and European initiatives like Wero have the potential to fundamentally reshape the market. These developments challenge the established business models of payment providers. Yet, they also open up opportunities for those who engage proactively with these changes.

Moreover, a comprehensive new regulatory package is set to impact every player in the financial system over the next two years. Regulations such as PSD3/PSR and DORA are poised to revolutionise the way payments and banking services operate. Additionally, there is ongoing debate about FIDA – whether it will come into force and, if so, what form it might take.

Adapting to the new requirements and reporting obligations may be exhausting – but even here lie tremendous opportunities. Data will become significantly more accessible to all actors, and when combined with the broader adoption of AI. Customers will soon benefit from highly personalised and precise financial offerings like never before. While it is by no means certain that all these changes will occur exactly as anticipated, now is the perfect time to prepare for a multiple future scenarios.

Our whitepaper (available for download below) aims to provide clarity on the direction of the payments industry. And offers guidance on how companies can best position themselves amid these upcoming changes. Which trends will prevail? Is there even one single driver that will ultimately dominate? We answer these questions by presenting a series of plausible scenarios for the payments world of tomorrow.

What does this mean for my company?

Discover in our exclusive workshop ‘NextGen Payments: Revolution or Evolution by 2030?’ how the future drivers of digitalisation, cyber security and regulation will affect your business models – and how you can make your company future-proof. Let’s start a dialogue together. We will be happy to answer any questions you may have.

Dr. Carlos Nasher

Sophia Kühner

Posted on , updated on by Sophia Kühner in Categories Payment tagged Tags , , , , , , , , , , ,