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Is it possible for the EU to agree to this version of the backstop without reopening the financial settlement?

Im not sure it is...

Purpose of the backstop is something that needs to be in place - legally and operationally - by end of transition. At the moment that’s Dec 2020
Creating two new borders - regulatory GB-NI and customs NI-ROI - takes time.

The customs border, clearance hubs, trusted trader schemes, business readiness etc - you can’t do them in 14 months.
You can’t agree to an insurance policy if you have no confidence it would be in place at the time you need it.
We can extend the transition for up to two years. But that requires negotiation and agreement (including the UK’s budget contributions during that time).

Given the EU want deal on fish before date to agree extension - no guarantees an extension would be mutually agreed
So looks impossible to agree a proposal like this with the default end of transition being Dec2020.

That means default date of transition end would need to be changed and extended.

And that means the two sides would need to agree what the UK would pay during that extension.
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