Digital identities are just months away from launch, and your clients are looking for information, guidance, and solutions.
Your clients have questions about the standards they must follow to comply with the new digital identity requirements. Technology solutions providers who learn the regulations and requirements and how they apply to their clients’ businesses and organizations can grow their businesses by providing solutions and guidance on these new regulations.
Background on Digital Identity Regulations
The European Commission will provide each EU citizen and resident with access to a digital identity that European citizens can use for everything from paying taxes to renting a bicycle. Every person eligible to get a national ID card will be able to obtain a digital identity recognized across the EU’s member states.
For consumers, this will allow citizens of EU member states to log into websites and online accounts using their European eID rather than usernames and passwords. For businesses and governments, it will be a system to quickly confirm identities, eligibility for employment, and other common identifying information.
The Council of the EU and the European Parliament reached an agreement in June 2023 on the eID framework. The revised framework ensures universal access to electronic identification by using a digital wallet on a mobile phone.
The revised framework also expands the list of trust services, including electronic ledgers, management of electronic signatures, and seal creation. In addition, it takes a harmonized approach to security, both for consumers and online service providers, so that they can process transactions with confidence.
Improving Customer Experiences
Using a digital wallet is familiar to many EU citizens, who use it for boarding passes when they travel or store payment card data for transactions. With new rules, all citizens will have the right to a digital wallet issued by EU member states. This allows them to verify their identity when accessing online services and storing documents like driver’s licenses or academic credentials.
As more people have access to a digital identity for regulated activities, such as cross-border travel, banking, social security, and healthcare, inevitably, consumer expectations will be that businesses will accept it for private services like renting a car or online shopping. In fact, 63 percent of EU consumers say they prefer a single, secure digital ID. Businesses that lag behind their competitors may lose customer loyalty to competitors that can quickly accept payment and verify identity.
Businesses will need the technology to communicate with the digital wallet. They’ll also need a way to protect that data and allow consumers to control how it’s used.
Expertise is in Demand
With digital identities going into effect in September 2023, businesses are looking for solutions providers with the expertise to help them implement secure solutions for accepting digital identities and provide updated information on the framework.
You can also show your clients how the new digital identity can help them operate more efficiently. For example, banks and financial institutions that must comply with Know Your Customer (KYC) regulations can use the digital identity to meet those obligations while streamlining customer onboarding experiences. Additionally, organizations such as telecom companies and online platforms will be required to accept wallets and electronic signatures.
Your clients will turn to you for information, advice, and solutions. Are you ready?