A trio of banking associations, collectively named the European Credit Sector Associations, have supported the European Commission’s proposal for a EU digital identity but have called for payments to be omitted from the framework over some ambiguity that banks would be expected to reimburse fraud victims.
The banking sector seemingly rejects making a commitment to invest in the EU digital identity wallet infrastructure, falling fall behind in these digital identity stakes as a whole.
The proposal promises to encourage individual countries to drive their own e-ID solutions with more possible secure use cases.
A sector that has still not fully embraced the full potential of digital identity, the challenges of committing to digitalisation and integrating with the european digital ID wallet infrastructure have once again resurfaced.
Banking groups called for payments to be left out of the compulsory regulation to mitigate confusion over which parties would be held accountable for fraud. It would require huge investment to give the finance industry a significant stake in digital identity security, with one impact being the rising costs for merchants and service industries accepting card payment methods.
Being aligned with the EU’s digital identity proposals also commits banks to promising assurance of strong customer authentication rather than user verification only.
In a shared statement, the banking entities said: “We urge the European Parliament and the council to reconsider their proposed wording during the trilogue negotiations”.
