EU’s Smart ID Wallet – Paving the Way for a Seamless Digital World
A few days back, the European Union Commission published a draft for digital ID wallets for all the EU residents. As of today, only 60% of the residents can use a digital identity across member states. To ensure that every citizen has control over their data, the Commission has proposed a plan for EU digital ID wallets for every resident on June 3, 2021. According to the Vice President for a Europe Fit for the Digital Age, Margrethe Vestager,
“The European digital identity will enable us to do in any Member State as we do at home without any extra cost and fewer hurdles. Be that renting a flat or opening a bank account outside of our home country. And do this in a way that is secure and transparent. So that we will decide how much information we wish to share about ourselves, with whom and for what purpose. This is a unique opportunity to take us all further into experiencing what it means to live in Europe, and to be European.”
What is the EU's Digital ID Wallet Decision?
Also known as the EUid, the digital ID wallet will provide access to all digital services within the European Union. This identity will be verified once and can be used anywhere they want without undergoing the hassles of multiple verifications. The step is all set to revolutionise lives in the future.
Digital ID Wallets – Background
The EU Commission decided to make the European Union contactless. Also known as the 2030 Digital Compass, the proposal sets out various targets and milestones that can be achieved with European Digital ID. For instance, medical records will be available online.
For a digital future, the Commission has built on the existing eIDAS regulation. The law has built the foundation for cross-border electronic identification, website certification and authentication in the EU. Around 60% of the residents are already benefiting from the system.
Digital ID Wallet Framework
Member states will offer residents digital wallets that will link their national identity to proof like driving licenses and bank accounts. Europeans will have full control over their data and the liberty to share information. The Digital Identity Wallet will be available to anyone who wants to use it and anywhere to consume digital services within the EU.
Discover more about our proposal on a trusted and secure Digital Identity for all Europeans: https://t.co/Ik4HA9vDCq
— European Commission 🇪🇺 (@EU_Commission) June 3, 2021
Digital ID Wallets – Discussing a Use Case
The Digital ID Wallet can be used for any of the following:
- Opening a bank account
- Applying for a bank loan
- Filing tax returns
- Requesting documents like birth certificates, marriage certificates, reporting a change of address, etc.
- Applying to a university
- Requesting medical records
- Renting a car
- Hotel check ins
Let’s take a look at how opening a bank account will get easier with Digital ID Wallet.
Generally, opening a bank account has several steps. First, the end-user has to register for the account. Then, the bank requires certain identity documents for verification. Next, is the verification process that takes a while if the financial institution is following conventional procedures. In case the end-user has submitted the wrong document or missed a detail, the hassles for repeating the entire process are unbearable.
On the contrary, the Digital ID Wallet can overcome such challenges. All the documents will be saved in the individual’s wallet. The individual has to do is register for the account opening process and select the required documents. Since the documents are verified, it is not necessary for the bank to verify them during customer onboarding. The bank securely receives these documents and carries out the rest of the account opening process.
A Sneak Peek into the Benefits of Digital ID Wallets
For both businesses and individuals, the benefits of Digital ID Wallets are infinite. Let’s take a look at some of them:
|eID||Customer base will expand with a reduction in costs. Building trust in cross-border transactions will be easier||Opening bank accounts in different countries will be seamless|
|eSeal||Streamlined procedures. Promote trust in the document origin||Guarantee that concert tickets bought online are legitimate|
|Web Authentication Certificate||Protect business reputation and prevent cyberattacks||Individuals will know that the website is trustworthy to share information|
|eSignature||Help innovate business procedures||No paperwork required|
The Commission will work with the EU member states along with the private sector regarding the technical aspects of the EUid parallel to the legislative process. The Commission will support European Digital ID framework implementation. Furthermore, many member states of the EU have started working on the implementation of e-government solutions, including the EU Digital ID Wallet.
In a nutshell, the Digital ID Wallet will have all the verified documents in one place, making it easier for not just individuals but businesses as well. Apart from convenience, cost reduction and streamlined procedures are some other benefits of EU’s Digital ID Wallet.
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