The clock is ticking: It's time for digital transformation

In the environment of the exponentially increasing, cross-industry level of digitalisation, the sub-sector of strong identification and authentication of private and legal persons is increasingly being transferred into the digital world. The market significance of technological progress is underpinned by the regulatory and catalytic influence of the European Parliament and Council in the form of the eIDAS (electronic identification, authentication and trust services) Regulation (EU) No. 910/2014.

Due to technological alternatives, the window of opportunity for active market participation and profitable provision of retained identity information is closing, for example on the part of the financial and insurance sectors. New segments of significant market relevance based on strong identification/authentication are emerging, such as e-health and smart cities. Within existing industries of sensitive customer identities (e.g. banking, insurance), the opportunity arises to fully digitise processes of regulated identity verification along applicable compliance and security requirements. Current strategic directions of the public and private sector should be recalibrated to avoid potential displacement from the exponentially growing and highly profitable identity market. Here, CORE recommends using our expertise to proactively define collaborative cooperation models with global technology providers at an early stage or to shift business models towards overarching value-added services.