With the European Digital Identity Wallet (EUDI Wallet), the European Union is establishing a uniform framework for digital identities in Europe. In future, EU citizens and businesses will be able to use their identity data and other official documents (e.g. driving licences) securely across different systems.
Why digital identities are becoming strategically important
For organisations, this represents a structural intervention in existing identity and trust architectures, as well as in their access to customer platforms. The EUDI Wallet is therefore not merely a regulatory initiative in the field of identity management, but a strategic lever for new digital business models, more efficient processes and trust-based customer interactions.
eIDAS 2.0: What exactly is changing?
With the eIDAS 2.0 Regulation, the European Union is modernising the existing legal framework for digital identities, trust services and signatures. Whilst the previous eIDAS Regulation primarily governed national eID systems for use with public authorities, eIDAS 2.0 aims to make digital identities widely usable in the everyday lives of EU citizens and businesses.
eIDAS 2.0 obliges every EU Member State to provide a digital identity solution, establishes clear responsibilities, strengthens secure use across national borders and thus ensures a new trust infrastructure.
For financial service providers and insurance companies, digital credentials are particularly relevant, as digital identities already form a central basis for digital onboarding and KYC processes, contract conclusion, authentication and fraud prevention. The EUDI Wallet offers the prospect of making identity and attribute data standardised and trustworthy in future – and thus gradually replacing fragmented and nationally-driven procedures.
For regulated financial institutions and insurance companies in particular, engaging with eIDAS 2.0 and digital proofs is becoming absolutely essential, as they must offer the EUDI Wallet as an authentication method for business processes in conjunction with strong customer authentication. This places them under significant regulatory pressure to make identity checks more efficient and secure, whilst at the same time enabling them to significantly improve digital customer experiences.
The EUDI Wallet enables efficiency gains, new business models and better customer experiences
The EUDI Wallet opens up a wide range of opportunities for businesses. On the one hand, identity verification can be significantly simplified, as it reduces the need to switch between different systems or can even eliminate the need for third-party services (such as PostIdent) altogether. At the same time, the Europe-wide roll-out of the standardised architecture expands the potential customer base. In practical terms, this means, for example, that German financial institutions can offer their products to EU citizens in other Member States much more easily. Furthermore, the customer experience is improved, as proof of identity can be provided once and used repeatedly.
The EUDI Wallet: How the system works
The EUDI Wallet is the practical implementation of the eIDAS 2.0 Regulation. It serves as a digital wallet that provides the following functions for users. It is important to note that users retain full control over their own data, as data protection principles such as ‘data minimisation’ are taken into account.
Key features of the EUDI Wallet at a glance:
Die Wallet dient zur verschlüsselten Speicherung der verifizierten Identitätsdaten (PID – Person Identification Data) sowie (verifizierter) digitaler Nachweise ((Qualified) Electronic Attestation of Attributes), wie etwa Examens- oder Versicherungsnachweise.
Nutzer können sich plattformübergreifend bei Web-Services und Portalen von Banken und Versicherern anmelden. Diese starke Kundenauthentifizierung ersetzt etablierte Passwort- oder SMS-TAN-Verfahren durch biometrische und zertifikatsbasierte Authentifizierung.
Dank DSGVO-konformer Verfahren erlaubt die Wallet dem Nutzer, Daten selektiv freizugeben. Für eine Risikoprüfung oder einen Altersnachweis müssen Unternehmen nicht mehr den gesamten Datensatz abfragen, sondern erhalten nur die exakt benötigte, verifizierte Bestätigung (zum Beispiel die Altersverifikation: „Nutzer ist über 18 Jahre“) ohne dass weitere sensible Daten abfließen.
Die Wallet integriert die Fähigkeit, Verträge direkt und ohne Medienbrüche rechtssicher digital zu unterzeichnen (QES). Dies erfüllt das gesetzliche Schriftformerfordernis und ermöglicht die digitale Vertragsunterzeichnung und damit den rechtsverbindlichen Abschluss von Finanz- und Versicherungsprodukte.
The EUDI wallet is embedded within a multi-layered ecosystem comprising wallet providers, issuers of digital certificates, verifiers and trust service providers. This interplay requires clear roles, technical standards, interfaces (APIs) and reliable governance structures – at both national and European level.
What lies ahead for businesses
Companies should first clarify what role they play within the EUDI ecosystem and how wallet-based interactions can be integrated into existing processes. Existing identity, access and KYC processes should be assessed and, where necessary, realigned.
Added to this are heightened requirements regarding security, data protection, liability and governance. Technical integration alone is not enough – robust operational models, clear lines of responsibility and thorough documentation are required, not least with a view to future audits and regulatory scrutiny.
Last but not least, the time factor presents many companies with challenges: the national roll-out of the EUDI wallet is taking place in stages, but the strategic preparation phase within companies should begin now. Companies that position themselves early on lay the foundations for operational efficiency and new value creation. Latecomers, on the other hand, risk facing increasing pressure to adapt, whilst under time and cost constraints. Now is the right time to clarify roles, prioritise use cases and future-proof their own identity architecture.
How KPMG can help –
eIDAS 2.0 transformation support
Our solution-oriented approach combines specialist and regulatory expertise with technical know-how regarding the implementation of the EUDI wallet into your existing IT infrastructure.
Phase
Focus & Core Activities
Strategic added value
1. Impact- & Readiness-Assessment
Analysis of existing onboarding and customer journey processes. Comparison with the regulatory requirements of eIDAS 2.0.
Analysis of core processes and proactive closure of compliance gaps.
2. Target Operating Model (TOM) & Architecture Design
Design of the target technology architecture. Selection of suitable interfaces (APIs) and integration patterns for existing core banking systems or ERPs.
A future-proof, modular IT architecture that preserves existing systems and ensures maximum interoperability.
3. Use-case specification & prototyping
Developing specific pilot use cases (e.g. digital custody account onboarding or automated claims settlement) and setting up proof-of-concepts (PoC).
Minimising implementation risk through early, data-driven validation of the business logic.
4. End-to-end implementation & change management
Managing the technical implementation, integrating with the national trust framework and empowering the organisation.
Ensuring a go-live that is on schedule and compliant with eIDAS 2.0, whilst maintaining a high standard of operational excellence.
Your contacts
Christian Nern
Partner, Financial Services, Head of Cyber Security Solution
KPMG AG Wirtschaftsprüfungsgesellschaft
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