Powens Newsletter - January 2025

As we enter the new year, the Open Finance landscape continues to evolve rapidly, presenting exciting opportunities and challenges. In this first edition of our 2025 newsletter, we’re diving into key priorities for tackling regulatory changes, exploring fresh industry insights, and sharing our top content to keep you ahead in the fintech space.?

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Let’s start the year strong!

The revised Consumer Credit Directive (CCD2) is set to transform lending practices, particularly in the growing Buy Now, Pay Later (BNPL) market. With BNPL projected to grow by 25% annually, stricter affordability checks are vital to safeguard consumers and ensure compliance.

Key Compliance Requirements

Assess borrowers’ income, expenses, and liabilities to prevent over-indebtedness. Use GDPR-compliant data sources—avoiding sensitive or irrelevant information. Ensure transparency in credit decisions with clear borrower explanations.

How Powens Supports Compliance

Our Open Finance solutions provides real-time access to balances, transactions, and historical data from over 143 financial institutions in France. It automates affordability checks thanks to pre-built financial indicators, ensures compliance, and empowers BNPL providers to make data-driven decisions with confidence.

?? Contact us to learn more about our CCD2-ready solutions.

Unlocking New Fintech Opportunities Post-FIDA

The EU’s Financial Data Access (FIDA) Regulation is set to reshape the financial sector, driving collaboration and innovation. Here’s what EY’s latest report highlights about how FIDA will impact French financial institutions and fintechs:

1?? Broader Data Sharing: FIDA mandates banks, insurers, and asset managers to share data via APIs, creating opportunities for fintechs to build services like data aggregation and advanced risk models.

2?? Enhanced Consumer Empowerment: Customers in France will have greater control over their financial data, enabling more tailored products and competitive options.

3?? New Fintech Collaboration Areas: French fintechs can collaborate with insurers and asset managers to develop personalized financial solutions, create regtech tools for compliance, and expand embedded finance ecosystems.

These developments emphasize the critical role of Open Finance in fostering innovation across the French financial ecosystem.

Read the full report here.

1. EU Fintech Regulations in 2025: Navigating the New Normal Stay ahead of the latest regulatory trends, including CCD2 and FIDA, to ensure compliance and capitalize on new growth opportunities. ?? Read the article

2. Real-Time Cash Flow Visibility for Accounting Software Discover how real-time bank data is transforming cash flow oversight, enabling better decision-making for financial software users. ?? Read the article

3. Fintech Trends for 2025: Innovation and Regulation From embedded finance to Open Banking 2.0, explore the top fintech trends that will shape the year ahead. ?? Read the article

At Powens, we’re committed to helping you navigate the evolving Open Finance landscape. Whether you’re preparing for CCD2 or looking to enhance your financial solutions, our team is here to support your goals.

?? Get in touch with our experts today.

?? Follow us to stay informed on the latest fintech trends and innovations.

Here’s to a successful 2025,

The Powens Team