Securing the future of the EU Digital Identity Wallet: Why we need corporate digital identity standards now
Abstract
This paper explores the critical necessity for establishing corporate digital identity (CDI) standards in the digital economy of the European Union. As online services proliferate, the need for secure digital identities (IDs) becomes paramount, particularly within the European Union, which has advanced initiatives such as the electronic IDentification, Authentication and trust Services (eIDAS) regulation and the proposed EU Digital Identity Wallet. The discussion differentiates CDI from individual digital IDs, emphasising unique complexities such as dynamic corporate structures and distinct data privacy requirements. This paper argues that robust CDI frameworks can significantly enhance security, streamline processes and ensure regulatory compliance, particularly in financial transactions. It underscores the imperative of developing common standards for both referential and transactional data exchange, facilitating seamless and secure cross-border interactions. The creation of such standards necessitates collaboration among regulatory bodies, financial institutions and industry participants, with an eye towards global interoperability. By establishing these standards, this paper posits that it will be possible to foster greater trust, efficiency and transparency in digital ecosystems, ultimately benefiting both corporates and individuals. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Henry Balani is a Clinical Professor of finance at Loyola University Chicago and a financial services executive with over 27 years’ experience in the regulatory technology and consulting industries. In his role as a Global Head of Industry and Regulatory Affairs at Encompass Corporation, he oversees relationships with Industry Analysts and Regulatory Agencies addressing financial crime issues through Regulatory Technology solutions. In his capacity as an academic, Balani lectures on Corporate Finance and publishes research related to the impact of anti-money-laundering (AML) penalties and regulations on banking sector valuations in the US and Europe. Previously published papers included identifying the impact of introducing AML regulations on banking sector valuations, the impact of faster payments on AML compliance and measuring trade-based money laundering in Asia. Balani speaks at major regulatory compliance conferences globally. He has advised US government agencies on the operational impact of AML and Office of Foreign Assets Control (OFAC) regulations in the financial services industry as well as acting as a consultant to several international government agencies, including the International Monetary Fund (IMF), Financial Action Task Force (FATF) and the World Bank. He has conducted panel sessions with senior OFAC, US and EU government officials as well as provided input into the development of the fifth EU AML Directive. Balani holds a Doctorate in business administration (finance) from the University of Wisconsin, an MBA degree from Northern Illinois University and a BS degree in economics, international trade and development from the London School of Economics.
