e‑ID: implementation now crucial
The Swiss Bankers Association (SBA) supports the revision of the Financial Market Supervisory Authority (FINMA) circular on video and online identification. It is vital for the Swiss e-ID to be fully recognised as a means of identification – in a technology-neutral manner and consistently across all identification procedures. This is the only way to ensure that it can meaningfully complement banks’ existing digital processes and unlock its potential to enable secure, efficient and customer-friendly digital applications.
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The SBA welcomes FINMA’s partial revision of its Circular 2016/7, which takes account of technological progress in digital methods for opening customer relationships and rigorously adheres to its technology-neutral and risk-based approach. New means of identification and related procedures are to be permitted, provided they guarantee a comparable level of security and are coherently embedded in the existing regulatory framework.
Banks’ key concerns
The following concerns are especially important from the SBA’s point of view:
- Firstly, the banks want the Swiss e-ID to function as a fully fledged identification document that can be used in all identification procedures – both online and video. There is no factual basis for any restriction that would unnecessarily hinder digital onboarding processes.
- Secondly, where the e-ID already offers a high level of security, any additional requirements that bring no discernible benefit, such as address checks or bank transfers, should be waived. The advantages of the e-ID would otherwise be eroded.
- Thirdly, regulations should be consciously worded in a way that makes them technology-neutral and covers solutions yet to be developed. In addition, the Swiss e-ID should be internationally compatible and capable of integrating with the EU Digital Identity (EUDI) Wallet in order to facilitate cross-border customer relationships.
What this means for banks
A trusted means of digital identification is vital for efficient processes, state-of-the-art customer experiences and the competitiveness of Switzerland’s financial centre. The e-ID can be a central element of this, provided it is compliant with regulations and practicable and does not involve unnecessary additional hurdles.
Our full response can be found in the German version here.