“With eIDAS, the entire banking system can be integrated at the European level.”
Sven Stevenson, Senior Advisor on Deposit Insurance and Bank Resolution at De Nederlandsche Bank.
“If customers from other countries can log in using their own national eIDs, the potential benefits are considerable for us,” says Sven Stevenson of De Nederlandsche Bank. “As the country’s central bank, we run the Netherlands’ deposit guarantee system. In other words, if a Dutch bank ‘goes under’, it’s our job to make sure that account holders are compensated. We want to link the payment process to DigiD, which would cut the time it takes to get compensation from three months to seven working days. DigiD is a Dutch identification system that makes use of public service numbers, which also form the basis of the banks’ record-keeping. However, a lot of Dutch banks operate internationally, meaning that a significant number of account-holders aren’t Dutch. As things stand, swift compensation won’t be available to those account-holders, because the system is based on DigiD and doesn’t accept foreign IDs. However, with eIDAS, we’ll be able to handle cross-border transactions just as quickly and securely as domestic transactions.”
“At the moment, the financial services industry still has a strong national focus,” continues Sven. “In principle, you can open an account with any bank you like, in your own country or another. But, in practice, that’s not the way things work. That’s because identification, which is vital for banks, can’t easily be done on an international level. eIDAS is an important step towards changing all that. Widespread use of eIDAS opens the way for the entire banking system to be integrated at the European level. That has to be good for the stability of the banks and the financial system as a whole.”