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How digital identity can be leveraged to fulfil the potential of digital transformation

​What benefits do banks and other organisations gain by using digital identity in their digitalisation strategy? And exactly how can digital identity be leveraged to fulfil its potential and increase efficiency while reducing costs?

A McKinsey Global Institute study has shown that "secure, verifiable digital ID can result in increased process efficiencies and reduced costs, saving up to € 1.4 billion in the financial services sector once reduced fraud losses are included."

Roland Eichenauer, VP of Business Development & Sales in eSecurity & Digitisation at Nets, answers four of the most frequently asked questions about digital identity and how eID can be used to future-proof an organisation's digitalisation strategy.

"What are the main benefits of using digital identity as part of a digitalisation strategy?"

"Digital identity has many benefits for any company that wants to future-proof their digital transformation. For the customer, it improves the online shopping experience and increases brand loyalty. This is done through providing a single, user-friendly, and flexible way to access multiple services through one platform. For the company, digital identity improves some of the manual processes associated with onboarding, identification and authentication. Simultaneously, digital identity reduces fraud, which boosts overall operational efficiency. "

"Another great benefit is that digital identity can help to ensure compliance. Today, it's essential to live up to the EU's regulation requirements, such as PSD2, GDPR, and eIDAS. By having a next generation digital identity solution, companies can reach compliance in these areas much faster while being future-proof to new regulation. Equally, by choosing a solution with the highest standards, this will ensure that the necessary compliance requirements are met."

​Author/source: {attribution}

Roland is an international sales and business development professional within the Financial industry with a track of +20 years of experience across Europe. In his current position at Nets he is leading the Business Development team for Digital Identity, Value Added, and Trusted Services - offering outstanding Digital Identity solutions and Value Added Services for remote digital onboarding by Identification, Authorising, Authentication, and Signing in European territories.

"How can digital identity be leveraged to deliver better customer experiences?"

"Digital identity platforms are the foundation for a frictionless and trusted digital user experience, whether that's for online banking, customer onboarding or other applications. With fast and secure digital identity, banks and other businesses can offer a smooth user experience by ensuring that the user reaches A to B in a frictionless way. All the while the user remains in the bank's brand without interruptions. Digital identity gives customers the ability to switch smoothly between service platforms without having to re-enter their identity, and also makes it easier to access value-added services such as credit applications, mortgages and lending without frequent authentication requests that put some customers off."

"Can you give an example of how digital identity improves conversions and profitability?"

"By implementing a digital identity solution, a bank or organisation can reduce the time and cost of customer authentication while improving the customer experience. When customers shop online for example, digital identity significantly reduces the number of escalated authentications required under SCA (Strong Customer Authentication), which eliminates friction at checkout and improves the conversion rate. More broadly, digital identity strengthens customer loyalty and grows revenue by speeding up online service delivery and enabling greater automation."

"Compliant, modular digital identity solutions can help banks make the most of digital transformation - especially when it comes to automating processes such as customer onboarding, dispute resolution, bill payments, and other processes that are still stuck in the paper age. Digital identity makes customer onboarding easier and reduces friction while using their services."

"How do you see digital identity effecting Open Banking?"

"As Open Banking makes it possible to access a vast range of services through a single banking portal, digital identity solutions will be essential. Digital identity enables customers to move smoothly between service platforms without re-confirming their identity, offering a single, easy-to-use, and flexible way to access multiple services on one platform. Open Banking holds tremendous promise both in existing use cases and new applications – and I am sure that digital identity will be central to access this potential."

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