Jun 7, 2021
Certification Authorities: AML5 and eIDAS as their best allies
Certification authorities play a key role in Europe but have been limited by regulation. Now, those barriers have disappeared.
Europe and certification authorities
The Regulation eIDAS and the Digital Single Market (DSM) have led to a homogenization of the digital market in Europe, the second world economy with a market of 20 billion. This regulation has involved a drastic change to 508 million users.
In this scenario, Certification Authorities play akey role. However, only three certification authorities in Europe overcome 30 million euros of turnover because electronic signature and trust services directives were technically unworkable.
Previous regulations to eIDAS and AML5 aroused a testimonial introduction of trusted electronic services. The need for physical elements as chips, the different incompatibilities, the need to move for the issue of certificates and great difficulty in the process complicated its implementation.
Just a few players were able to make a profit from a fragmented European approach where technicians and jurists won the chance to approaches where technology was easy to use and penetrable in people’s day-to-day lives.
DocuSign, which has a turnover of 400 million and 350,000 clients (twice as all European certification authorities together), found solutions to usability with a digital signature, which although it had virtually no place in the European legal framework, won a share of the low operational risk market.
However, with the new changes, the certification authorities not only have a great opportunity but the responsibility to contribute to value creation.
The main changes that are creating new opportunities are:
eIDAS and AML5: new regulations
eIDAS was born with a clear intention of application in the business world. Similarly, the new AML5 directive entrusts identification to the eIDAS service framework. This directive implies the homogenization of the European market and the simplification of all processes, allowing, for example, the general use of cryptocurrencies.
It is estimated that the direct turnover in the European Digital Market will be, thanks to the development of eIDAS and AML5, several billion euros.
If you are interested in learning more about this new directive, click here to download the complete guide.
This achievement powers the financial sector, which sets trends in digitalization and creates a space to provide electronic trust services focused on clients.
Meanwhile, in the rest of the continents, the same trend is being followed and more than 25 countries in the world (mainly Latin America and Asia) are copying the principles of European regulation to develop theirs.
Qualified Electronic Signature Centralized
Complex and decentralized control mechanisms are transformed to make way for a centralized and easy security. Now, the user is allowed to use the Qualified Electronic Signature (with high-level security), equivalent to the handwritten one, with security mechanisms similar to those of everyday life, such as the PIN in credit cards. This help eTSPs offer valuable and easy-to-use services, and introduce them in companies’ and users’ daily life.
US players will be able to maintain market share in some processes of signature identification, but it will be no more than 20% of all digital processes a citizen can carry away, being far from the European security framework standards technically and legally, where certification authorities have much more experience.
There are everyday high-level identifications and signatures that must be digitized and need a high level of security still remain, for example:
- Account opening and high-level contracting (mortgages, pension plans, direct debit, etc.) in the financial sector.
- Procedures for trips (check-in at hotels, border procedures, etc.).
- The relationship among electronic administration and citizen participation.
Pre-current regulations erred in need for physical presence for identification prior to the issuance of electronic certificates. Something incoherent that makes online solutions difficult.
New eIDAS regulation allows the first digital identification for the issuance of qualified certificates to be developed remotely with streaming video solutions and biometric technologies to facilitate authentication in certificates and other trusted services.
eID, partner of the certification authorities
Electronic IDentification (eID) is a strategic partner for certification authorities. We are the leading Video IDentification company in Europe and we offer the possibility of issuing certificates of a natural person remotely and completely online.
Our VideoID technology allows the identification of a user in less than 30 seconds, being the first to obtain a certification by a Conformity Assessment Body (CADB) in Europe for an asynchronous video process (instant video registration + subsequent verification by a qualified agent).
Additionally, eID has created SmileID, a facial biometric authentication technology that registers the unique patterns of the person and uses it throughout the life cycle of the relationship with the user, on any channel and medium.
In this way, video and biometric technology are combined with trusted services in multiple use cases and sectors in a multichannel strategy.
If you want to know in a detailed and practical way of how our solutions can help you in this new scenario, do not hesitate to request a demo.