Oct 16, 2018
eIDAS regulation: How has it changed the financial services?
In this article we will go over what the eIDAS regulation is, how it has created the concept of Digital Single Market, why is it so important, and how is being implemented.
What is eIDAS regulation?
The new legislation (EU) nº 910/2014 of Digital Identification and Electronic Signature created by the European council known as eIDAS, was implemented in July 1st of 2016 all over the European Union.
It is a legislation that, besides regulating electronic identification, establish some requirements for the trustworthy services of electronic transactions.
eIDAS regulation together with AML5 directive have created the concept of Digital Single Market (DTM) and they are also disruptive for a single market of 508 million consumers and a game changer for the financial industry.
For full information regarding this new European market, download our whitepaper here for free: Ever dreamed of a Unique European Market such as in the US?
What is a trustworthy service of electronic transactions?
Trustworthy services of electronic transactions are those that are in accordance with the established requisites in the new eIDAS regulation, and allude the services of electronic loans and the ones that count with identity security.
In accordance with article 3 of eIDAS regulation, ‘trust service’ means an electronic service normally provided for remuneration which consists of:
- the creation, verification, and validation of electronic signatures, electronic seals or electronic time stamps, electronic registered delivery services and certificates related to those services, or
- (b) the creation, verification and validation of certificates for website authentication; or
- (c) the preservation of electronic signatures, seals or certificates related to those services
What is a trust service provider?
In accordance with article 3, paragraph 19, from eIDAS regulation, a provider of electronic trust services is a “physical person, or legal, who provides one or more electronic trust services, as a qualified provider or as a non-qualified provider of electronic trust services”.
What kind of electronic signatures eIDAS recognizes?
This legislation defines three types of electronic signatures:
- ‘Electronic signature’ means data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign;
- ‘Advanced electronic signature’ means an electronic signature which meets the following requirements:
- It is uniquely linked to the signatory.
- It is capable of identifying the signatory.
- It is created using electronic signature creation data that the signatory can, with a high level of confidence, use under his sole control.
- It is linked to the data signed therewith in such a way that any subsequent. change in the data is detectable.
- ‘Qualified electronic signature’ means an advanced electronic signature that is created by a qualified electronic signature creation device, and which is based on a qualified certificate for electronic signatures.
Juridical effects of the electronic signatures by eIDAS
The eIDAS regulation states that the simple signature, the advanced signature, and the qualified signature are all legally binding.
The new element that this legislation introduces is that the qualified signature will be recognized in all the states of the European Union, with independence from the state where it was issued.
Why is the eIDAS regulation so Important?
This legislation introduces, for the first time in history, electronic identification methods so then companies will not require the physical presence of their clients in their offices to offer their services.
Due to this, regulated industries, such as the finance or telecommunications, will be able to acquire new clients online anywhere in the world. eIDAS regulation plants the seed to establish both an Identification document and an economic language common in Europe.
Meaning, that thanks to this new regulation, financial companies can offer their services in an unique digital market with 508 million consumers. The prior barriers that prevented a more secure market, with more confidence, and all digitalize have been brought down.
How has eIDAS affected Spain?
As we prior mentioned, this regulation expands the unit powers that the Union offers. By eliminating borders and allowing digital identification, strong identification, and the legalization of all authorized signatures in European territory.
It simplifies, reduces, and improves the transactions with public administrations, and at the same time, facilitates the movement of Spanish citizens in the European Union.
Benefits of eIDAS for companies
In the business world, eIDAS allows a better user experience at the digital level, and improves transaction transparency and the privacy of the users and citizens.
This legislation has enhanced the ability of companies in time and processes, eliminating the need for bureaucracy and documents, or even the mailing of documents.
We are in a time where the user experience, and all the processes that focuses on improving it, without any doubt, will have a huge success.
How can eID help you in fulfilling, and optimizing, the possibilities that the regulation eIDAS offers?
We are providers of trust services that complies with the strictest regulation, including eIDAS.
Besides our services of video identification, pioneer and the only one in the market, we offer a wide range of trust services, which includes strong identification, the videoconference, and the qualified electronic signature.
We have created VideoID, the first and only technology that combines streaming video with advanced Artificial Intelligence (AI) to identify people in mere seconds in any device, and through any channel. Providing the same technical security and juridical for essential identification.
The changes introduced by eIDAS have led to an European digital revolution that affects not only electronic signatures or digital identification, but also influences directly the revolution of cryptocurrency, by securing their reliability and allowing them to become mainstream.
This technological transformation changes the way in which we consume services and products, inside an ecosystem led by security and trust that is allowing a fast expansion of businesses never seen before.
Besides, eIDAS together with the new AML5 Directive allows financial companies to offer your services to a market with 508 million consumers.
If you want all the information about this new European market in a simple guide, just click here.