Identity Solutions for Banking Online

Online banks are currently facing a challenging regulatory environment, heavily influenced by key directives and guidelines that dictate their operations. For example, in Europe, anti-money laundering regulations, in particular the AMLD4 and AMLD5 directives, have expanded the scope of anti-money laundering controls to include cryptocurrency transactions and require rigorous know-your-customer (KYC) processes. These regulations require banks to thoroughly verify the identity of customers, a task that has become more complex with the shift to online banking. In addition, compliance with the General Data Protection Regulation (GDPR) is crucial, as it imposes strict protocols on the collection, storage and processing of personal data to safeguard customer privacy and trust.

The revised Payment Services Directive (PSD2), which introduces the concept of open banking and obliges banks to allow third parties access to customer data and payment services with their consent, further complicates the picture. This encourages innovation, but adds layers of complexity in data security and consent management. The Network and Information Systems Directive also places particular emphasis on cybersecurity, requiring high levels of security for networks and information systems in a banking sector with a high level of security.