As custodians of customers’ personal data, secure authentication and KYC procedures, banks have a significant and formidable stake in the digital trust market. As such, The Mobey Forum is urging big banks to converge payment card services with rising digital wallets.
Around half of the British public think that physical wallets are falling out of favour with the rise of digital wallets which offers banks a better commercial opportunity to integrate digital payment credentials and capitalise on additional revenue streams.
Issuing digital wallets is a service needed to fulfil banking customers’ needs by storing digital payment credentials into a common place and enabling secure transactions.
The Mobey Forum report identifies a unique opportunity that banks have to expand their portfolio of services to become brokers of trust in the digital trust economy.
Many large U.S. banks are securing big tech integrations with well-known wallet providers or creating their own digital wallet to help customers pay using online merchants, for example Wells Fargo, Bank of America, JPMorgan Chase and others.
Building upon their strong positions of trust and security, banks should be steadfast in developing their own wallet solutions or sharing credentials with established wallets.
The statistics show that from a customers’ perspective, there is a great demand for banks to base their commercial output on digital credentials and wallets.
Over 66% of Americans expect to transition to using a digital wallet by 2023 with 54% of consumers across different age groups preferring to use a bank-issued wallet.
The common roles banks can play to deliver digital identity services are issuing wallets, being an identity/credentials provider, credential consumer or authentication provider.
Momentum is building among banks in North America, Europe, and Africa where 66% of those surveyed reported already issuing a Digital Identity Wallet or thinking about developing one in the future.
