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Digital identity: the benefits of using a service for personal data exchange
Finland is planning a large-scale digital identification, which will be carried out via mobile devices. According to the government, such a step will simplify the exchange of confidential information between citizens. At the same time, the project will be able to provide a high level of security for personal data.
The network of digital identification will enable the users in Finland to quickly and most importantly safely confirm their identity and send and receive information with their confidential data. The exchange will be possible with all files that are stored in the digital wallet of a smartphone or other mobile device.
The network will simplify interactions between companies and their customers. Each of them will be able to share important information without direct physical contacts, such as certificates or contracts. At the same time, all transactions will be protected from being disclosed to third parties.
The solution is being developed by taking into account all the EU requirements applicable to eIDAS. In addition, the service will interact with the digital identity wallet for the EU countries, which is currently under development.
To implement the project, the Finnish government has engaged representatives of various organizations, both the private and public sectors. The Ministry of Finance, Nordea Bank, Technology Finland, Finland Post, and others are working together on the creation of a single network.
As for the EU digital wallet, its creation was first discussed in 2021. Its main purpose is to simplify citizens’ access to various services online. In the service for digital identification, users will be able to store important documents to confirm identities, such as a driver’s license or passport. It is expected that the pilot version of the product will be launched next year, and by 2024 each country in the EU must provide its own version of digital identity. That’s exactly what Finland is working on.
An important consideration in the creation of the service is security. The authors of the project presented various methods to prevent the theft of personal documents. According to the results of the survey among citizens of the European Union, 65% of them mentioned the risk of confidential information getting into the hands of third parties as the main argument against the use of a digital wallet. The introduction of this service is the most loyal to France and Italy, about 80% of the residents of these countries are ready to use the wallet.
Through the digital service, Europeans will be able to easily apply for rent and open a bank account or credit. All processes will be integrated and accessible for EU citizens in any country of the Union. According to the forecasts of analysts, the introduction of such a system will save from 4 to 10 billion euros in 5 years. Besides, the transition to electronic document flow will enable the optimization of workplaces in a number of state institutions.