3 Reasons Why Banks Should Have the EU Digital Identity Wallet on Their Radar

May 9, 2023
Man in blue shirt holding a phone, with text about the EU Digital ID Wallet’s impact on customer onboarding in the background

Here’s how Wultra can help your business get ready for what's coming.

The European Digital Identity is an initiative that has been proposed by the European Commission to provide a secure, trusted digital identity for EU citizens, residents, and businesses alike. It will make it possible for both individuals and companies to secure access to various online services and the ability to conduct transactions with full control over their personal data.

How Does the EU Digital Identity Work?

In terms of how the EU Digital Identity will be implemented, it all comes down to a digital wallet. The EU Digital Identity Wallet will be available via mobile apps and will make it possible for wallet holders to carry out a wide variety of actions, such as:

  • Identifying themselves both online and offline
  • Storing and exchanging information provided by governments (such as their name, date of birth, and nationality) as well as information provided by trusted private sources
  • Using information as confirmation of the right to reside, to work, or to study in a certain EU Member State
  • Using information to apply for a bank loan, file tax returns, and much more

Thanks to the trust framework created by the eIDAS regulation, the identification and trust services made possible through The EU Digital Identity can already be used with legal effect across the European Union.

Top Benefits for Banks Using the EU Digital Identity Wallet

While there are myriad benefits for banks and fintech companies that embrace the opportunities presented by the EU Digital Identity initiative, we’ve identified three top advantages for organizations that are ready to incorporate the EU Digital Identity Wallet into their onboarding ecosystem.

1. Innovative simplicity

The EU Digital Identity fosters digital transformation throughout today’s banking and fintech landscape. By utilizing a standardized digital identity framework, the initiative allows organizations to focus on developing and delivering innovative services instead of investing significant resources into building identity management systems from the ground up. This, in turn, enables banks to keep up with evolving customer expectations and market trends while remaining competitive.

2. Fraud reduction

To protect user identities and data, the digital wallet app makes use of robust security measures, such as Strong Customer Authentication (SCA) within PSD2 legislation and eIDAS. By leveraging the EU Digital Identity infrastructure, organizations can enhance the security of their digital services and reduce the risk of identity theft, fraud attempts, and other digital threats.

3. Seamless customer onboarding

Positive onboarding experiences are crucial for attracting and retaining customers and minimizing drop-offs. Because the EU Digital Identity Wallet is unified across the EU, banks can more easily provide support to expats seeking their services — and in the more distant future, it could even be possible to onboard customers from throughout the EU.

Three smartphones showing steps to open a new account on a banking app.

How Wultra Can Help Integrate the EU Digital Identity Wallet

Wultra is here to provide an authentication solution to securely incorporate the EU Digital Identity Wallet as well as equip banks and fintech companies with the necessary information to integrate it into the authentication ecosystem.

Our solution features straightforward and user-friendly digital onboarding, customer authentication with the use of biometrics or PIN code, comprehensive mobile security, persistent malware protection, and threat intelligence with a visual analytics dashboard. 

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Ondřej kupka
Picture of Account Executive Ondrej Kupka
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