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The European Digital Identity Wallet is expected to become an important part of the EU digital identity ecosystem over the coming years. As the eIDAS 2.0 framework evolves, banks and other regulated institutions are preparing for wallet-based identity, authentication, and credential exchange across digital services.
For banks, the more immediate question is not only regulatory compliance, but how wallet-based identity can improve onboarding, strengthen authentication, simplify cross-border services, and reduce operational friction across digital channels.
This article covers the most relevant banking use cases for the EUDI Wallet ecosystem, based on the eIDAS 2.0 framework, the Architecture and Reference Framework (ARF), and the results of the European Commission's Large-Scale Pilots.
Understanding the Bank's Role in the Ecosystem
Banks can operate in multiple roles within the EUDI Wallet ecosystem.
Issuers create and sign verifiable credentials and deliver them into a user's wallet using the OpenID for Verifiable Credential Issuance (OID4VCI) protocol. Verifiers, called relying parties in regulatory language, request and validate credentials from a wallet using OpenID for Verifiable Presentations (OID4VP).
A bank can be both. As a relying party, a bank accepts government-issued Person Identification Data (PID) and other attributes from a customer's wallet for KYC, authentication, and contract execution. As an issuer, a bank can provide verified credentials such as proof of account ownership, proof of income, or payment credentials into a customer's wallet for reuse across services.
Use Case 1: Customer Onboarding and KYC
This is the most mature and immediately actionable banking use case.
Today, onboarding typically involves document uploads, verification services, database checks, and manual review. Cross-border onboarding adds additional complexity because of differences between national identity systems.
The EUDI Wallet fundamentally changes this process. When a customer presents their PID from a certified wallet, the bank receives cryptographically signed identity attributes that were verified by a government-authorised issuer at Level of Assurance High under eIDAS 2.0.
There are no documents to scan or manually validate. The credential carries its own proof of integrity. The bank verifies the issuer signature, checks revocation status, and confirms wallet attestation in seconds.
Wallet-based PID is also recognised within the new Anti-Money Laundering Regulation (AMLR), applicable from July 2027, as one of the recognised methods for customer due diligence.
Selective disclosure is particularly important. Banks can request only the attributes required for a specific process, such as name and date of birth for account opening, instead of collecting and storing full identity documents. This supports GDPR data minimisation requirements and reduces unnecessary data exposure.
Because certified EUDI Wallets must be mutually recognised across the EU, banks can also standardise cross-border onboarding flows without building country-specific identity integrations.
Use Case 2: Strong Customer Authentication
Under the eIDAS 2.0 framework, institutions that already use Strong Customer Authentication (SCA) are expected to support the EUDI Wallet as an additional authentication option as the ecosystem rolls out across the EU.
The regulation does not require banks to replace existing authentication systems. Instead, the wallet is expected to complement existing SCA methods.
The wallet provides a phishing-resistant authentication flow based on cryptographic challenge-response mechanisms tied to keys stored in the wallet's secure cryptographic device. Users authenticate locally with a PIN or biometric, while the wallet performs the signing operation.
For online banking login flows, this can significantly reduce credential-theft risks. A customer selecting "login with EUDI Wallet" completes an OID4VP presentation flow, with the signed response verified by the bank backend.
Use Case 3: Qualified Electronic Signatures on Financial Contracts
Every certified EUDI Wallet can generate Qualified Electronic Signatures (QES) with the same legal standing as handwritten signatures across EU member states under eIDAS 2.0.
Historically, QES adoption has been limited by separate enrolment requirements with Qualified Trust Service Providers (QTSPs). The wallet removes much of this friction by embedding signing capabilities directly into the identity ecosystem.
This creates immediate opportunities for banking workflows such as loan agreements, mortgage documentation, investment mandates, account opening contracts, and SEPA direct debit authorisations.
A customer can verify their identity and sign a legally binding financial contract in a single digital session without additional onboarding or identity proofing steps.
QES generated through the wallet is also tamper-evident. Any modification to a signed document invalidates the signature, improving auditability and reducing disputes around document integrity.
Use Case 4: Cross-Border Account Opening
Cross-border account opening has traditionally been difficult because of fragmented identity infrastructure across EU member states.
The EUDI Wallet simplifies this significantly. Because PID credentials issued by certified wallets must be recognised across the EU, banks can onboard cross-border customers using the same process as domestic customers.
The underlying identity assurance level remains consistent regardless of which member state issued the wallet.
This use case has already been validated through the Large-Scale Pilots, including the EWC and DC4EU initiatives, which tested wallet-based identification for banking scenarios across multiple member states.
For banks operating across several EU markets, this creates an opportunity to standardise onboarding architecture while simultaneously addressing eIDAS 2.0, AMLR, and future PSR obligations.
Use Case 5: Issuing Verified Bank Credentials into the Wallet
One of the most strategically important use cases is the ability for banks to issue their own Electronic Attestations of Attributes (EAAs) into customer wallets.
These credentials can include proof of income, proof of account ownership, verified IBAN credentials, or proof of address derived from banking relationships.
This allows customers to reuse verified banking attributes across other digital services without repeatedly uploading documents or requesting manual confirmations.
Bank-issued credentials also benefit from cryptographic integrity protection and revocation mechanisms. If circumstances change materially, a credential can be revoked without exposing where it was previously used.
Over time, this positions banks not only as verifiers of identity, but also as trusted issuers within the wider European digital identity ecosystem.
What This Means for Security Architecture
The EUDI Wallet changes several assumptions underpinning traditional banking identity infrastructure.
Rather than relying solely on internally managed identity credentials, banks increasingly verify cryptographic proofs issued by trusted entities. This reduces phishing exposure, lowers risks associated with credential databases, and shifts identity assurance responsibility toward certified issuers.
The ARF also introduces formal relying party registration requirements. Banks must obtain ecosystem certificates before requesting wallet data, creating stronger trust controls around credential exchange.
For institutions with legacy systems, the emerging best practice is to deploy a dedicated wallet integration layer that handles wallet protocols, credential validation, revocation checks, and certificate management independently from core banking infrastructure.
What Banks Should Prepare For
The EUDI Wallet is no longer only a regulatory initiative. The standards are evolving, pilot programs are already running across Europe, and banks are beginning to evaluate how wallet-based identity fits into onboarding, authentication, signing, and credential issuance flows.
For banks with older onboarding and authentication systems, getting ready will likely involve architecture reviews, relying party registration, vendor selection, and integration planning. Depending on the complexity of the environment, implementation readiness can easily become a 6-to-12-month effort.
Many of the banking use cases discussed above have already been validated through European Commission Large-Scale Pilots involving public and private sector participants across multiple EU member states.
At Wultra, we see this transition as an opportunity for banks to modernize digital onboarding, authentication, and credential management in a more secure and interoperable way. Solutions such as the Wultra Digital ID Wallet Gateway are designed to help financial institutions integrate wallet ecosystems into existing banking infrastructure while supporting evolving European regulatory requirements.
Let's talk about EUDI wallet integration
Dalibor Premus
Frequently asked questions
Does the EUDI Wallet replace existing authentication methods?
No. eIDAS 2.0 requires banks to support the wallet as an additional authentication option alongside existing Strong Customer Authentication methods.
Can banks issue credentials into the wallet?
Yes. Banks can issue Electronic Attestations of Attributes (EAAs) such as proof of income, proof of account ownership, or verified IBAN credentials.
How does the EUDI Wallet support cross-border onboarding?
Certified wallets must be mutually recognised across EU member states, allowing banks to use the same onboarding process for domestic and cross-border customers.
Can the EUDI Wallet support legally binding electronic signatures?
Yes. Certified EUDI Wallets can generate Qualified Electronic Signatures (QES) with the same legal standing as handwritten signatures across the EU.
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