Can Sweden be an example of successful digital transformation in identification?
Spoiler alert: No!
Since 2005, Mobile BankID has been the leading method of identifying the population in Sweden. Through a separate identity wallet app, with its identity issued by a bank, a single sign-on ecosystem includes >98% of the adult population in Sweden.
Mobile BankID, like many other identity companies, is basing its technology on PKI (Public Key Infrastructure). Although the world has seen many benefits of PKI technology, the problem still remains when it comes to data privacy and scalability.
Mobile Bank ID (a PKI solution) how it has affected banks in Sweden?:
Reduced foot traffic: With Mobile BankID, customers no longer need to physically visit a bank branch to complete certain transactions, such as opening a bank account, signing loan agreements, or making transfers. This has led to a significant reduction in foot traffic in bank branches.
Increased efficiency: Mobile BankID has made it possible for banks to automate many processes that were previously done manually, such as customer identification and document signing. This has increased efficiency, reduced wait times, and allowed banks to serve more customers with fewer resources.
Lowered costs: With Mobile BankID, banks no longer need to invest in physical infrastructure or hire additional staff to manage customer traffic in bank branches. This has led to significant cost savings for banks.
Improved customer experience: Mobile BankID has made it possible for customers to complete transactions from the comfort of their own homes or on the go using their mobile devices. This has improved the overall customer experience by making it more convenient and accessible.
Why PKI solutions can not be used for an international organization:
Typically a bank or other organization that uses Public Key Infrastructure (PKI) solutions would need to have separate PKI servers in each country where they operate. This is because PKI relies on a hierarchical system of trust, where each organization has its unique digital certificate issued by a trusted Certificate Authority (CA). To operate in different countries, the organization would need to obtain digital certificates issued by a CA that is trusted in each of those countries. This would require using separate PKI servers or systems designed to comply with local regulations and standards.
In addition, there may be other legal or regulatory requirements related to the use of PKI solutions in different countries, which could further complicate the implementation and operation of a centralized PKI system across multiple countries. As a result, it is common for organizations to use separate PKI systems or solutions for each country or region where they operate, to ensure compliance with local requirements and regulations.
Is there a middle ground?
Yes, there is now 12iD. International organizations can scale faster and more efficiently with the help of 12iD’s distributed infrastructure around the world. 12iD’s blockchain technology keeps the technology lightweight and cost-effective for the involved organizations, without them having to share customers’ information with 12iD.
Read more about our technology here.
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