Electronic Identification (eID) offers numerous possibilities, as shown in the following scenario: as a bank based in Luxembourg, a customer wants to use your portfolio management services. Using the customer’s digital identity, you as a bank are able to verify the customer’s identity and perform all due diligence checks. You then send and receive the contract signed electronically by the customer and yourself.
This scenario illustrates the opportunity that eID represents for banks, whether in terms of operational efficiency, security or customer experience. The European Commission has therefore made eID the cornerstone of its Digital Strategy, and intends to put in place the necessary legal framework by 2024.
The ABBL is part of the Task Force set up notably by the European Credit Sector Associations (ECSAs). It aims, among other things, to align the parties on a common definition of eID, define the use cases, identify the impacts on the economy and clarify the role of banks.
The key role of banks: requesting and providing evidence
Banks will certainly have a key role to play in eID, not only as users, but also in validating the Identification. Three key roles are identified:
- Holding the evidence, i.e. “Data subject” and “Identity provider”.
- Issuing the evidence, i.e. “Issuer of verifiable credentials/attributes”.
- Requesting evidence, i.e. “Relying parties”.
Electronic Identification in Luxembourg
In Luxembourg, eID is already used on a regular basis:
The Luxembourg national identity card, which is held by almost all Luxembourg residents and which allows them to access administrative services, but also to sign documents electronically.
LuxTrust, an authentication service available in various forms:
- LuxTrust Mobile
- LuxTrust Scan
- Smart cards
- Signature stick
- GO6 Token
- itsme app
LuxTrust allows customers to authenticate themselves online, sign documents electronically and carry out banking transactions in complete security.
By Antoine Van den Bulcke