Swisscom Trust Services - Trust Blog

Unlock Business Growth with Advanced Digital ID and Authentication

Written by Mario Voge | 12/3/24 1:23 PM

In the digital transformation era, organizations face the dual challenge of protecting user data while delivering a seamless and personalized user experience. Modern electronic identification (eID) and authentication solutions are revolutionizing how organizations verify identities, improve security, and unlock new growth opportunities. This blog will explain why integrating these solutions provides a strategic advantage for digital businesses and highlight two potential use cases.

 

The strategic advantage

Electronic identification bridges the gap between the physical and digital worlds by securely linking real-world identities to digital personas. This innovation enables organizations to:

  • Streamline customer onboarding: Automated and secure eID processes minimize manual verifications, reduce drop-offs, and accelerate time to service.
  • Improve cross-border collaboration: eID systems that comply with international standards, such as eIDAS, enable interoperability, allowing businesses to operate seamlessly across European borders.
  • Mitigate fraud risks: Robust encryption and biometric authentication reduce vulnerability to cyber threats and identity theft.

 

 

The phrase "time is money" is familiar. However, a new currency has emerged in the digital realm: trust. Companies that can combine both to offer their customers speed and still provide trusted digital services hit the jackpot. This is a decisive advantage over competitors who still rely on paper processes or work with opaque digital processes.

Case 1: Secure, lawful, 100 % digital trading and investing

Established financial institutions and new entrants to the digital financial business need scalable solutions to identify new users and drive growth. However, this initial identification is often still a media disruption hurdle. As a result, companies are looking for fully digital solutions that comply with anti-money laundering and data protection regulations.

With certified identification and authentication solutions, new customers can be identified initially, go through the KYC process, and authenticate themselves to authorize transactions. For example, opening an account or deposit can be completed within minutes instead of several days. This is a real boost, as there is no media disruption or long waiting times for conversion, which often causes users to drop off.

Case 2: Trustworthy contracts, signed in seconds

Closing deals quickly can make a huge difference in today's business world - whether in HR, where a promising candidate needs to be signed on as soon as possible, or in procurement, where a deal with favorable terms cannot be delayed. As the demand for timely agreements increases in the digital world, organizations are keen to replace the odd paper-based signature with electronic alternatives.

However, not all signatures are created equal. In many jurisdictions, including the EU, only the qualified electronic signature (QES) can be considered binding as a handwritten signature. To ensure this, the QES is subject to strict requirements. For example, the certificates used must be issued by a certified trust service provider. Most importantly, the signatories must be uniquely identified. They also need a suitable means of authentication to trigger a signature.

When you think about international contract negotiations, the onboarding of the parties becomes a challenge for a trusted signature platform. In this context, organizations need an easy-to-implement electronic identification solution that is location-independent and unaffected by time zone differences. Convenient, fast, and legally binding signature applications enable organizations to outperform their competitors when closing deals.

The bottom line

Modern eID and authentication solutions are not just about compliance – they catalyze innovation, trust, and growth. Organizations that embrace these technologies will not only position themselves as leaders in a connected world, delivering superior experiences while protecting user data, but will also be able to report measurable benefits, including:

  1. Increased customer trust: Reliable identification and authentication builds trust in digital transactions.
  2. Operational efficiency: Automated processes reduce costs and free up resources for innovation.
  3. Regulatory compliance: Compliance with frameworks such as eIDAS and anti-money laundering legislation ensures legal certainty across jurisdictions.

Want to delve into the details of today's identification and authentication methods? Download our comprehensive white paper here. If you are already one step ahead and need integration support for a specific solution, Swisscom Trust Services can also help. With an extensive partner network, we can develop a customized solution for various applications.