The objective of this paper is to provide an analysis of the potential reuse of eIDAS-based eID in the banking sector. This report has been produced in the context of the eID Value Proposition Project.
Over the past year, the European Commission has been exploring how electronic identification under eIDAS could be leveraged by the banking sector to comply with Know-Your-Customers’ requirements under the fourth Anti-Money Laundering directive (4th AMLD) and to guarantee strong authentication requirements of parties in the context of the revised Payment Services Directive (PSD2).
In parallel, banks are playing an increasing role as identity providers of electronic identity. The regulatory obligations and security needs to which they are subject in terms of identity verification have placed banks and financial institutions in a strategic position. More and more institutions are exploring how they could leverage the procedures that they have put in place to verify customers’ identity for other parties, acting as identity providers. eIDAS-based eIDs offer the possibility to provide a strong authentication of users (natural and legal persons), based on ID information endorsed by governmental authorities across Europe.
In order to better understand the opportunities and challenges of the sector regarding customer identification, six interviews with banks and financial institutions were conducted between February and April 2018. The analysis was complemented by desk research.
Final report about the use of CEF eID in the banking sector, by CEF eID SMO