On 23 March 2017, the Communication on "Consumer Financial Services Action Plan: Better Products, More Choice" was adopted by the Commission.

It shows once again how digitalisation is changing the way we live and operate and how innovative on-line services are transforming the way people use financial services.

However, to seize the opportunities brought by digitalisation, we need to provide a high level of security, convenience and protection of personal data. And this is particularly important for financial services. In the EU, we have the means to ensure this:  by using and relying on trustworthy electronic identification (eID) and trust services (such as electronic signatures and electronic seals) which ensure seamless user experience (e.g. online payments) and expand consumer choice. This is a high priority for us as also outlined in our eGovernment Action Plan where we commit to conducting further "[...] actions to accelerate cross-border and cross-sector use of eID (including mobile ID) in digitally enabled sectors (such as banking, finance, eCommerce and sharing economy) […]. The Commission will also explore the need to facilitate the usage of remote identification and secure authentication in the retail financial services",

The newly adopted Communication on Consumer Financial Services Action Plan makes explicit reference to electronic identification and the role of notified eID means under eIDAS. Just think about the convenience of using your eID means to open an on-line a bank account anywhere in in the EU, while meeting the strong requirements for customer identity proofing and verification for know-your-customer or customer due diligence purposes. Indeed, as VP Dombrovskis highlighted in his speech "we will promote widespread use of electronic IDs and signatures in the banking sector across Europe. The idea is to make it much easier for customers to choose any bank of their liking, in any EU country, without physically going into a branch. This has a potential to make banking sector more attractive as banks will be competing for consumersin a true Single Market." And the upcoming new Anti-Money Laundering Directive (AMLD 5) which is currently being negotiated by the co-legislators will also help move forward in this direction.

In addition, we have now the first pre-notified eID scheme in the EU. Indeed, on 20 February 2017, Germany was the first EU MS pre-notifying its eID card, thus paving the way to making the trust mechanism established by eIDAS a reality. This is moving Europe from a patchwork of national online markets to an integrated Digital Single Market, where – as our VP Ansip wrote in his blog - commercial and public services can flow easily and seamlessly across borders.

Now it is the other Member States' turn to notify their eID means to enable their citizens to use online services conveniently and securely across the EU. But it is not just about accessing online public services. Financial services, but also other sectors (e.g. online platforms), have a huge opportunity to seize by providing or relying on eIDs which will enable their customers to do business online across all EU Member States. In this regard, we are organising a one-day workshop in Brussels on 24 April, for representatives of online platforms, private and business platform users, and other interested parties where we will collect ideas for a set of principles for eID interoperability that the Commission will have to issue in the context of The Communication on Online Platforms and the Digital Single Market. We are also working, under the Connecting Europe Facility, with Member States to test the cross-border use of eID means by the private sector. We just published a call for proposals (CEF-TC-2017-1) - with a deadline set on 18.05.2017 - which provides grant funding to support the adoption of eID and eSignature in Europe and is also about integration of eID in an existing e-service/system/online platform to enable private and public sector entities (including local administrations) to support nationally issued eIDs issued from any Member State.

Through such integration, it is possible to verify the identity of new customers and assessment of personal details, with a ‘substantial’ level or above, that is in most cases better than today's current solutions.

More specifically for the financial sector, we are also preparing an implementation plan with the objective to progress towards a specific solution that, building on the eID building block under CEF, will meet the requirements of remote identification of bank customers. This is being carried out hand in hand with a study to assess the current regulatory and supervisory framework and best practices for remote identification and customer due diligence across the EU. A detailed questionnaire has been developed as part of the study and I welcome your feedback on it.

The Communication on Consumer Financial Services Action Plan also outlines the importance of having qualified eSignatures as a tool to enhance the security of electronic transactions. Indeed, since 1 July 2016 when the rules on trust services under eIDAS became applicable, the eIDAS Regulation provides the legal certainty – across borders – that electronic signatures and the other trust services have the same legal status as traditional paper-based processes. Hence, eIDAS revolutionises the way that EU companies can do business and lays the foundation for new innovative business opportunities.

In addition, the current version of the Regulatory Technical Standards which were drafted by the European Banking Authority and which were recently submitted to the European Commission for its approval, provides for payment service providers to rely on qualified electronic seals and qualified certificates for website authentication for the purpose of identification. This is another additional step forward in operationalising and accelerating the use of trust services in the financial sector thereby ensuring secure and convenient online transactions.

In this regard, a few days ago, we were informed that we have the first qualified certificate for website authentication available on the market. But I am sure many more will come shortly.

So, what next?

We have come a long way and laid strong foundations. We now need to further accelerate the uptake of these important services to fully reap the benefits they bring and to ensure we keep pace with the rapid evolution of the digital transformation that is affecting our lives. But for this, we need your full participation and involvement.

You can participate in our call for proposals, reply to the questionnaire, or you can attend our upcoming workshop. Or you can share your thoughts and ideas on our Observatory.

We are providing you with the tools, now we wait for you to get on-board!