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BRUSSELS, 2 September
2021 – The European Credit Sector Associations (ECSAs), submitted
joint feedback on 30 August to the European Commission’s initiative
for an EU digital ID scheme for online transactions across the Member States.
The ECSAs include the
Federation (EBF), the European Savings and Retail Banking Group (ESBG) and the
Association of Co-operative Banks (EACB).
welcome the Commission’s
proposal, announced on 3 June, for a regulation establishing a
framework for a European
Digital Identity, as well as the high ambitions outlined in the
initiative, which represent a positive development in the creation of a
future-proof EU single digital market.
A European digital
identity will make it possible to offer faster onboarding processes and improve
customers’ user experience while ensuring the same level of security as
face-to-face onboarding. The ECSAs believe that the proposal will ultimately contribute
to facilitating the adoption of digital banking services.
proposal aims to provide an ecosystem of credentials leveraging a new wallet
architecture of several ID solutions, which holds the potential to further
increase innovation for the benefit of all European businesses and citizens.
The proposed decentralised model fosters personal autonomy and increased
personal data protection, giving users control over their identity attributes.
The ECSAs believe the
proposal will incentivise the Member States to be more expedient in developing
e-ID solutions with a wide scope of usage and potentially much higher adoption
rates. It also provides grounds for some attributes to be validated against
public sources. This is a welcome development, particularly in processes where
a high level of assurance of these attributes is necessary, for example, the
KYC process. When acting as relying parties, banks should be aware of the chain
of trust in data sharing (including actors involved) and should be able to
promptly check the validity of credentials.
Call for banking
sector’s involvement in the Toolbox
The ECSAs appreciate
the cooperation between the European Institutions, Member States and the
private sector. Member States should cooperate in a coordinated manner towards
a Common Toolbox. The European digital identity should build on existing (and
upcoming) national notified e-ID solutions. The ECSAs believe that the banking
sector should also be involved in the development of the Toolbox. Banks can be
key partners in drafting a roadmap that ensures successful e-ID adoption given
the wide scope of use cases and related implementation costs.
It will be key to
establish a common technical architecture that enables the private sector to
integrate any digital wallet developed within this regulatory framework without
additional technical burden, regardless of where it is issued.
The ECSAs look forward
to a Toolbox that is a common, openly available standard that enables the
development of multiple, interoperable e-ID solutions and which incentivises
private sector schemes to participate.
About the ECSAs
e-ID Task Force
The ECSAs e-ID Task Force brings together
experts from 36 financial institutions and national banking associations with
the goal of expressing a common position for the whole sector on Digital
Identity. The Task Force stands ready to further engage on the strategic issue
of digital identity with the Commission, the EU co-legislators and a wide range
of stakeholders both at European and national level.