With recent developments like VR, AI, and metaverse environments, the boundaries between the physical world and people's digital representations are becoming increasingly blurred. On the one hand, this enables truly immersive experiences, but on the other hand, it also creates new challenges and threats. This applies above all to the financial sector, where transactions involving highly sensitive data and significant risk potential are carried out digitally. In fact, banks and other financial service providers have traditionally been leaders when it comes to security measures and risk management. In addition, strict regulations characterize the industry. However, what we still see today are isolated, individual measures that do not always work well together and repeatedly create analog hurdles—for example, paper-based documents in identification and authentication.
Banking customers demand the flexibility to engage with complex financial services on their own terms—wherever they are, at any time, and with full confidence in the security of their interactions. At the heart of enabling this freedom lies trust: every component involved—from smartphones and digital platforms to underlying services—must operate on a foundation of reliability and security to foster genuine, trust-based relationships.
Smart devices and interconnected systems open countless gateways that hackers can exploit. In such a world, digital trust is no longer optional; it is the bedrock of every interaction, particularly in the financial sector, where the stakes are highest.
Building this internet of trust requires deliberate steps and collaboration across the financial ecosystem. The first step is establishing a solid foundation through initial identification. Just as passports or ID cards identify who we are in the physical world, robust digital onboarding processes are essential to verify identity at the outset of any financial relationship.
The second step is proofing, which involves ensuring that a digital identity is inseparably linked to the individual's physical identity. This requires not only secure technologies, such as biometrics and advanced encryption, but also legal and procedural frameworks that guarantee the person behind a transaction is who they claim to be.
Once identity is established and verified, the third step focuses on guaranteeing authenticity in documents, contracts, and transactions. Digital signatures, tamper-proof verification mechanisms, and timestamps ensure that agreements cannot be forged or altered. For financial institutions, this is about more than compliance; it is about ensuring that trust is embedded into every interaction, from a small retail payment to a multi-million-euro loan agreement.
Finally, as the fourth step, true trust in the digital space requires accountability and auditability. Every action must leave a secure, transparent, and immutable trace that can be reviewed when disputes arise or regulations like DORA or NIS2 demand proof. This is the safeguard that ensures not only that rules are followed but that participants are held responsible for their actions.
No single player can create this environment of trust. It demands an ecosystem where banks, fintechs, technology providers, and regulators collaborate to build interoperable, secure, and user-centric systems.
Trust service providers such as Swisscom together wit their ecosystem partners are essential players for financial institutions in building and maintaining digital trust. Their role goes beyond supplying technical tools; they provide the secure foundation on which banks and other financial players can confidently digitize their processes. By verifying the identity of individuals, organizations, and systems through mechanisms like electronic IDs or digital certificates, TSPs ensure that financial institutions always know who they are transacting with in an online environment. This not only reduces the risk of fraud but also allows banks to deliver seamless, trustworthy digital interactions to their clients.
Equally critical is the assurance of data integrity. Through cryptographic techniques such as digital signatures, TSPs guarantee that sensitive information, contracts, or payment instructions remain unaltered and authentic throughout their life cycle. For financial institutions, this eliminates uncertainty and strengthens the reliability of digital communication. In addition, TSPs provide non-repudiation, ensuring that once a transaction has been signed and recorded, it cannot later be denied by the signing party.
The benefits of this partnership extend further into compliance with stringent regulatory requirements. In Europe, for example, the eIDAS Regulation sets out clear standards for electronic identification and trust services. TSPs help financial institutions meet these requirements, enabling them to replace traditional paper-based processes with legally binding digital alternatives. From customer onboarding and loan agreements to secure e-invoicing, TSPs make end-to-end digital workflows not only possible but fully compliant.
To maintain this role, TSPs themselves are subject to strict oversight. Only providers that meet EU requirements and pass regular audits are included in the EU trust list, ensuring that institutions can choose from a pool of trusted providers. Swisscom Trust Services goes a step further by holding certifications under both the EU's eIDAS framework and Switzerland's ZertES, which allows it to offer qualified electronic signatures across those jurisdictions. With a partner like this, financial companies are very well positioned for international growth while maintaining customer trust in all critical processes.
Download our latest whitepaper to learn more about the creation of trusted ecosystems in finance.