Q) What are the key actors in the Bank ID ecosystem?
A) The following are the key actors:
Customer
The individual who controls the use and sharing of their financial and identity information.
Issuer Bank
A trusted financial institution that issues cryptographically verifiable credentials related to identity, account ownership, income, balance thresholds, KYC status, or other financial assertions.
Verifier / Third Party Provider (TPP)
A fintech application, lender, merchant, insurer, or service provider that needs to verify certain user attributes without necessarily accessing the user’s complete financial data.
Bank ID Scheme / Trust Framework
The governance and interoperability layer that defines how participants interact within the ecosystem. The scheme establishes:
technical standards
trust rules
credential formats
compliance requirements
interoperability mechanisms
onboarding and accreditation rules for issuers and verifiers
The scheme may also define dispute resolution, security requirements, liability models, and certification processes for ecosystem participants.
Q) How is this beneficial for users?
A) This new interaction model for financial information sharing puts users in complete control of their financial information. Bank ID enables users to prove key financial or identity attributes without oversharing personal data. This improves privacy, reduces exposure of financial information, and gives users greater control over how their data is shared across digital services.
Key benefits include:
Reduced sharing of sensitive financial data
Better privacy and control over identity information
Faster onboarding and verification experiences
Lower risk of identity theft and data misuse
Reusable trusted credentials across services
Q) I am a fintech (TPP)? How will I benefit from the solution?
A) Bank ID enables TPPs to obtain high-assurance user verification while minimizing the collection of unnecessary customer data. This helps simplify compliance obligations and reduces exposure to sensitive information.
Key benefits include:
Access to unique, real and verified customer pool.
Access to trusted, verifiable financial assertions
Lower data storage and compliance burden
Reduced exposure to sensitive customer information
Faster customer onboarding and approval flows
Q) I am a bank. How do I benefit from Bank ID?
A) Banks have an ideal opportunity to be anchors of trust in a digital economy as they are highly trusted be customers and businesses alike. Bank ID allows banks to issue cryptographically verifiable credentials, which can be used by their customers in a flexible and privacy preserving manner. This allows banks to become a prominent part of their customer's life beyond banking.
Moreover, banks can also play the role for TPPs / verifiers for other banks' customers. In particular, shared KYC information with other banks is an important use case.
Q) Is there a monetization opportunity for the banks?
A) Indirect: Banks who participate in such a program will bring convenience, security and privacy to their customers' third party interactions and this will help them attract more customers thereby increasing revenue.
Direct: TPPs can be charged a platform fee for onboarding and a usage fee based on the completed transactions. This fee can be distributed among the banks based on the volume of statements/credentials issued by them.
Note:- In privacy-preserving identity ecosystems, the commercial value may lie less in monetizing customer data itself and more in operating trusted verification and attestation infrastructure that minimizes unnecessary data exposure.