The Ministry of Finance is Preparing a Common Lithuania’s Position on Data Sharing between Financial Institutions
The Ministry of Finance, having organized a presentation on the regulation on financial data access, which will create an open financial system in the European Union, invited associations uniting market participants and consumers to contribute to the formation of Lithuania's common position on this proposal of the European Commission.
"We constantly communicate with market participants and consumer organizations on relevant issues, we listen to their opinions and expectations. This EC proposal, which regulates the mechanism of access to financial customer data, is beneficial for the customers themselves, for business development and provides more opportunities to offer new products. It contains sensitive issues – ensuring the security of data transmission, additional investments for financial institutions in creating an integrated data sharing system, and others. Therefore, we invite market participants and consumers to actively participate in all stages of the document examination," says Vice-Minister of Finance Vaida Markevičienė.
On 28 June, the European Commission submitted a proposal for a Regulation on Financial Data Access, and the Ministry of Finance invited all interested parties to submit comments on the aforementioned proposal and contribute to the formation of Lithuania's common position.
The regulation aims to make financial services cheaper for customers by promoting digital transformation and accelerating the adoption of data-based business models in the financial sector of the European Union.
The goal will be achieved through four main measures. First, users will have more options to decide to whom and for what purpose they give permission to use their data, and they will also be able to manage all their permissions.
Second, financial institutions that hold data that consumers want to share with another financial institution will be required to provide that data free of charge, continuously and in real time.
Third, data will need to be standardized and move through application interfaces, thus ensuring a high standard of security for data and its sharing mechanisms. In order to respond to extremely rapidly changing market conditions and new technologies, market participants will be given the opportunity to decide for themselves on the technical specifications.
Fourth, financial institutions will be able to agree on a compensation mechanism between data users and data holders who will be required to implement application interfaces.
The regulation will also create conditions for the establishment of new financial market participants – financial information service providers. The regulation establishes the requirements according to which the providers of this service will be authorized.
It is tentatively planned that after discussions, submitted comments and assessments, the regulation could enter into force in the European Union from 2026-2027.
Last updated: 24-08-2023
Related news:
S&P Global Ratings confirmed Lithuania’s credit rating
Defence bonds were distributed for EUR 80.5 million across recent issues