It’s time for banks to secure digital identity

A new report published today by Mobey Forum’s Digital Identity Expert Group has identified unique opportunities for banks to leverage their position as custodians of personal data to offer value-added digital identity services and become brokers of trust in the digital economy. The report suggests that for digital identity systems to succeed, banks must bridge the divide between private and public sector and drive adoption of so-called digital identity wallets.

The report, entitled “The Rise of Digital Identity Wallets: Will Banks Be Left Behind?”, contends that growing consumer demand, regulatory mandates such as eIDAS in Europe, and the trend toward digital identity wallet issuance by global governments are requiring financial institutions to consider now the role they wish to stake out in the emerging digital identity ecosystem.

Already, banks in the Nordics and Canada have embraced strong Know Your Customer (KYC) procedures defined by strict regulatory compliance, and harnessed best in class security and authentication technology to achieve high levels of customer engagement in their respective BankID and Verified.Me systems.

The Expert Group’s research indicates, however, that banks don’t need to fully provision a wallet for meaningful participation. Rather, financial institutions can start by creating the infrastructure that enables issuance and acceptance of Verifiable Credentials. In addition to issuing wallets and credentials, banks also have opportunities to act as credential consumers, relying parties, authentication providers, and to combine these services in accordance with their own strategic approach.

“The growing need for trusted online identity is giving banks a chance to embed themselves more meaningfully in their customers’ lives by providing related services,” comments Elina Mattila, Executive Director, Mobey Forum. “Building on their strong positions of trust, banks should act now to establish prominent roles in this space. This will mitigate their risk of disintermediation in a world where their core businesses are being perpetually challenged by market disruptors.”

Banks’ participation in the digital identity space should not only be viewed as defensive, however. The Expert Group also contends that banks can move beyond traditional trust services and develop new identity-based use cases that address customer’s broader needs, creating value streams in the process.

Kevin Faragher, Interac, and Co-Chair of the Expert Group, adds: “Our research really underscores the important role that financial institutions can play. With people relying on digital identification and verification on an almost daily basis, issuing digital identity wallets will enable banks to better meet customers’ needs, stay relevant in their lives, and remove identity related pain points – providing issuing banks an opportunity to create competitive advantage and improve brand loyalty.

Jukka Yliuntinen, Gieseke+Devrient, and Co-Chair of the Expert Group, adds: “Banks are uniquely positioned in this space. They have a clear opportunity to bridge governmental digital identity services with private sector use-cases to create exceptional value for all stakeholders. Their close relationships to business clients also positions them favourably to address the many identity related challenges found in the B2B environment.”

To read more news and exclusive features see our latest issue here.

Never miss a story… Follow us on:
LinkedIn Security Buyer
Twitter logo @SecurityBuyer
Facebook @SecbuyerME

Media Contact
Rebecca Morpeth Spayne,
Editor, Security Portfolio
Tel: +44 (0) 1622 823 922
Email: [email protected]

About Security Buyer

Security Buyer is the leading authority in global security content, delivering expert news, in-depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 10 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the security sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Rebecca Spayne picture 2025

Rebecca Spayne

Managing
EDITOR

Georgina Turner image

Georgina Turner

Sales
Manager

Afua Akoto image - Security Buyer

Afua Akoto

Marketing Manager

Read the Latest Issue

Follow us on X

Follow us on X

Click Here

Follow us on LinkedIn

Follow us on LinkedIn

Click Here

Advertise here

Reach decision makers and amplify your marketing

Advertise here

Click Here

Related News

OneLink

Product Spotlight – Gallagher’s OneLink

Gallagher Security presents, OneLink – the product that is elevating remote security through the power of the cloud 
Pinaccle systems

Pinnacle Systems further supports Installers and System Integrators

Pinnacle Systems has launched the Pinnacle Partner Programme, a new initiative designed to provide enhanced support for installers…
Stephen Tickle

Comelit-PAC Appoints Stephen Tickle as Regional Sales Manager

Comelit-PAC has appointed Stephen Tickle as its new Regional Sales Manager.  Stephen will focus on supporting PAC’s access control…
Intersec Saudi

Intersec Saudi Arabia returns with record exhibition space

Intersec Saudi Arabia, the premier industry platform for security, safety and fire protection, will return to the Riyadh…
Abloy UK

Abloy Academy breaks attendance records

Abloy UK has achieved record breaking attendance at its Academy, with more professionals than ever attending its…
Hikvision

Hikvision Introduces X-ray Baggage Inspection System

Hikvision India has recently introduced X-ray Baggage Inspection System with AI- enabled Intelligent Recognition Capabilities…
GBV

IFPO Column: The Quiet Signals of Danger

Yoyo Hamblen of IFPO and Gary Simpson, Nonverbal and Behavioural specialist discuss the important topic of Gender-Based Violence..
Doorbird Carousel

Product Spotlight – Door Communication for the “Neue Wallufer”

 A customised solution case study for a residential complex is presented by DoorBird and CompuNet Systems GmbH 
suprema

Suprema Achieves EN 60839 Certification

Suprema, a global provider of AI-powered access control and security solutions, has achieved EN 60839-11-1:2013 Grade 3 certification
ASSA ABLOY

Electric locks are a vital component in digital access

To protect the important openings in their buildings, organizations need locks they can trust. This means more than just strength…
Scroll to Top