Digital identity could be bank's future business model, study shows

Tuesday 27 April 2021 13:48 CET | News

Switzerland-based digitisation and innovation expert ti&m has released the ‘Bank Study 2021 - The Tension of Digitisation’.

As part of the study carried out in January and February 2021, 211 experts from the financial sector were interviewed. This study showed that the majority of industry experts stated they were in favor of financial institutions offering digital identification services on their own platforms in the future. According to a ti&m representative, the strict regulatory supervision of identification requirements is one of the reasons that the Association of German Banks (BdB) issued a position paper stating that verification and digital identities should play a central role for banks. This conviction is shared by the experts questioned in the study who see identification services as a sensible expansion of the banks' service portfolio. 61% of the experts surveyed supported user identification through digital identity provision.

The representative further explains that in countries such as Denmark and Sweden, the bank's data pool of verified identities of citizens with bank accounts can be used for identification solutions in ecommerce as well as in official processes. A representative survey of bank customers that ti&m carried out in 2020 confirms that banks benefit from their market position as the industry enjoys a high reputation when it comes to confidentiality. According to this 2020 study, 90% of Germans trust their bank when it comes to data security, which the representative stated is a reason for the service providers to operate the interface between analogue and digital identity.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: report, digital identity, cybersecurity, identity verification
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: Switzerland
This article is part of category

Securing Transactions