The EU Digital Identity Wallet has the potential to revolutionize the way customers verify their identity, reactivate accounts, sign documents, and more.
In a follow-up to our recent rundown of the EU Digital Identity Wallet and its importance for banks and fintech companies, we’d like to provide a deeper dive into the unprecedented opportunities that are made possible by this initiative.
What Will Opening a Bank Account Look Like in 2025?
For most people, opening a bank account is no small feat. There’s paperwork, in-person meetings, and a collection of personal documents that need to be provided in order to get things off the ground.
Imagine a world in which the simple act of presenting a digital identity document unlocks the ability for customers to open a bank account. While it may sound a bit like science fiction in 2023, this opportunity will become a reality as soon as 2025 — and the EU Digital Identity Wallet is what makes it all possible.
To give a clear picture of what this revamped process could look like, we’ve prepared a conceptual study for our customers. The following video demonstrates just how simple the user flow for opening a bank account will be when integrated with the EU Digital Identity Wallet.
While user experience is a core benefit in this scenario, there’s security built into the process as well. The digital wallet app EU Digital Identity framework makes use of robust security measures, such as Strong Customer Authentication (SCA) within PSD2 legislation and eIDAS, which reduces the risk of customers being exposed to fraud attempts, identity theft, and other digital threats.
Introducing Elevated Experiences for Bank Customers
Opening new bank accounts isn’t the only action that will be simplified through the use of the EU Digital Identity Wallet. With the help of The EU Digital Identity framework, businesses throughout the EU have the opportunity to give customers secure access to various online services as well as the ability to conduct transactions with full control over their personal data.
Holistic Digital Customer Onboarding
Banks and fintech companies that incorporate the EU Digital Identity Wallet can provide a holistic digital onboarding experience to their customers. After setting up a new account, the EU Digital Identity Wallet can make it easier for customers to interact with internet and mobile banking (such as while making transactions) and receiving ongoing support.
When banks provide customers with this level of service, it encourages customers to stay with the bank for a longer period of time. It also helps new customers form a positive relationship with the bank and its services in a quick and straightforward manner.
Reactivating an Account
In the same vein as opening a new bank account, the current process for reactivating a bank account typically requires customers to present multiple documents to banks in order to verify their identity. With the EU Identity Wallet, however, the customer’s identity is securely stored within their wallet.
During account reactivation, customers can use their wallet to authenticate themselves securely, which both proves their identity and grants the bank consent to access the necessary information.
Product Signing
Product signing is another way of referring to the act of providing an electronic signature. While product signing certainly applies to actions taken by banking customers (think applying for a bank loan), it’s also applicable in any scenario where customers are required to provide their signature (such as signing contracts online). This, in turn, eliminates the need for paper documents and physical signatures altogether.
The European Commission has recently rolled out a collection of six use cases for the EU Digital Identity Wallet which include the points that we’ve outlined above. Take a look at the use cases, as well as the large-scale pilots being run in specific EU member states, to further explore the opportunities made possible through the use of the EU Digital Identity Wallet.
Is Your Business Ready to Integrate the EU Digital Identity Wallet?
There’s no time like the present for banks and fintech companies to invest in a comprehensive solution to incorporate the EU Digital Identity Wallet. Fortunately, our team has the expertise to help you integrate it into your authentication ecosystem. Check out how Wultra can help your business prepare for the upcoming EU Digital Identity Wallet with our secure authentication solution.
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