Proving who we are is no longer just about paper forms or plastic cards. From opening a bank account to accessing government services, digital identity is fast becoming a cornerstone of modern life. For governments and financial institutions, getting it right is essential—not just for convenience, but for security, convenience, privacy, inclusion, regulatory compliance, and broader economic growth.
When implemented effectively, digital identity systems unlock significant value for both individuals and institutions. Estonia’s eID system allows citizens to vote online and access over 99% of government services digitally. India’s Aadhaar biometric ID brought hundreds of millions into the formal economy. Similarly, Sweden’s BankID enables seamless digital banking and government service access through trusted, bank-backed credentials. These are not edge cases. They are blueprints for the future.
Market trends & strategic importance.
Despite its potential, digital identity remains fractured. Across the globe, public and private sector entities are launching ID systems without standardized frameworks. Mobile apps, federated login systems, and government portals all coexist—but rarely interoperate. The result is a patchwork of services that can’t always verify each other’s credentials. This fragmentation creates friction for users, burdens organizations with integration costs, and increases vulnerability to fraud and misuse.
Cross-border interoperability is particularly challenging. Today, a digital driver’s license or national ID may only be valid within a single country or use case. The European Union’s eIDAS 2.0 regulation aims to change this by launching the European Digital Identity Wallet. Its goal is ambitious: to enable any EU citizen or resident to use a single, secure digital identity across all member states by 2030. This initiative brings with it complex regulatory, technical, and governance challenges, but also an enormous opportunity for consistency and trust on a scale.
Even within national borders, ID verification is inconsistent. Financial institutions often rely on a mix of government databases, document scans, and third-party providers. This fragmented approach increases compliance costs and leads to poor user experiences. In the UK, for example, one report suggests that nearly 25% of applications are abandoned due to lengthy or difficult ID checks. That translates directly to lost revenue, lower financial inclusion, and heightened risk exposure.
New frameworks are being implemented to address these issues. Mobile-first identity models that incorporate biometric verification are now gaining traction. With deep-fake technology on the rise, these AI-driven biometric systems offer a critical layer of fraud prevention. Other layers of security is needed and therefore strong cryptographic credentials are fundamental.
Digital identity wallets are also reshaping how we share personal information. Users can store credentials—like age, nationality, or employment status—and present only the relevant information when needed. This approach supports privacy through data minimization. Standards such as ISO/IEC 18013 ensure that mobile driver’s licenses (mDLs) function across devices and jurisdictions, improving user experience and interoperability.
Decentralized identity models are pushing this evolution further. These frameworks allow individuals to control their credentials using secure, distributed systems, that are scalable and strong from a privacy perspective. Rather than relying on a central authority, credentials can be issued and verified through blockchain-based or federated models.
Risks of inaction.
Our experience shows that success in digital identity hinges on two essential principles: interoperability and trust. Standards bodies must ensure that different identity solutions speak the same language. At the same time, certification bodies like Fime must validate that solutions are implemented correctly and are resistant to threats. Without these two pillars, even well-designed systems risk poor adoption.
The strategic implications are clear. For government agencies, a secure digital ID system improves service delivery, promotes inclusion, and strengthens national security. For financial institutions, it streamlines onboarding, improves fraud detection, and enhances user satisfaction. The cost of inaction includes falling behind in customer expectations, regulatory compliance risks, and increased exposure to synthetic identity fraud.
Our perspective.
Around the world, government pilots are already live. For instance, mDLs can be used in both public benefits programs and financial onboarding. In Europe, the EUDI Wallet pilots are being conducted with broad public and private sector participation—including Fime—to validate cross-border functionality and security. Countries like Canada, Singapore, and Australia are likewise investing in infrastructure that enables digital identity as critical national infrastructure.
Private-sector adoption is keeping pace. In the Nordics and Canada, bank-issued digital IDs have reached critical mass, offering a seamless way for users to authenticate across a variety of services. Under eIDAS 2.0, European banks and utilities will soon be required to accept government-approved digital IDs for user authentication, pushing interoperability even further.
Also consider that Digital identity is not only about individuals. Business identity could help reduce fraud and improve efficiency across financial services and supply chains for instance.
When used together with digital signatures it can create a big opportunity to reduce fraud and improve efficiency, improving payments integrity, contracts and invoices.
Fime is proud to be at the center of this shift. We’ve been accredited under the FIDO Alliance’s Identity Verification Certification Program, allowing us to certify advanced identity verification solutions in our global labs. We actively participate in pilot programs and testing events, helping vendors verify that their implementations conform to emerging standards. Our role spans testing, strategic consulting, and certification assuring digital ID solutions are secure, compliant, and scalable.
Recommended actions.
Let’s Talk…..If you’re exploring digital identity adoption to benefit from fraud reduction, better compliance and improved efficiency, evaluating your organization’s readiness or creating a new line of business, we’re here. Trusted, seamless digital ID is coming fast. Let’s build it together.
Marcelo Bellini Garcia, Vice President Digital Identity
Marcelo Bellini Garcia has 30+ years’ experience in the payments and digital identity industries. In Morpho (later Idemia), Marcelo was managing director in Brazil, Colombia, and the USA when he helped deploy EMV technology in multiple Latin American countries and the USA. He has also worked on the first biometric database solutions for banks. In Mastercard, Marcelo worked on the assessment and deployment of the reusable digital identity network and managed several products, including EMV 3DS. Now at Consult Hyperion by Fime, Marcelo is the global Vice President of Digital Identity Consulting. Marcelo is graduated in Mechatronics in Escola Politecnica da Universidade de São Paulo and master’s in administration in Fundação Getúlio Vargas.
