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16.09.2015

Norway, at the forefront of digital identity for mobile banking services

Image | Designcollector

The Northern European countries are seen as the benchmark in many fields. Education, environmental policies and family-friendly policies are just a few of the areas in which their good work has made them the example to follow. Mobile identity applied to digital banking services is a clear example of this, with Norway, more specifically, being one of the benchmarks at an international level.

Digital identity in the banking sector enables users to manage their bank accounts through their mobile phone without fear of becoming a victim of identity theft or suffering any form of personal information theft. Since the launch of the mobile Bank-ID system in 2009, Norway has become a global leader in banking security.

Shortly after electronic banking began, mobile identity services in Norway were quickly consolidated, mainly thanks to the swift collaboration between the operator Telenor, and the country’s main bank Den Norkse Bank. Today, more than three million Norwegians can perform all their bank transactions through their smartphone. Given that Norway’s population totals just over five million, this is not about a small figure that may go unnoticed.

Mobile Bank-ID was born with the intention of offering its users a system that solved the accessibility and management problems of the previous system. For this to be achieved, the key was to find the perfect balance between users, banks and mobile phone operators. The success has been overwhelming as currently the five main Norwegian operators (Tele2, TDC, NetCom, Ventelo and Telenor) are a part of the mobile Bank-ID programme. Additionally, the service works on all networks and with all types of phones, which are also key reasons for its successful expansion. These are some of the conclusions provided by the report ID_M, Mobile Identity, a study developed by Mobile World Capital Barcelona in collaboration with GSMA, Accenture, NXP and T-Systems about the definition, implementation and the actual applications of the mobile identity.

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Image | ID_M, Identitat Mòbil

The advantages to mobile Bank-ID

The process to subscribe to the mobile Bank-ID service is very simple. The client asks for the admission via smartphone to the bank, and the latter, which already has the personal data, validates his or her digital identity. Once this step has been completed, the Bank-ID organisation provides the client with a mobile Bank-ID SIM, with which they can activate the system and start using it.

Mobile Bank-ID solutions in Norway have been mainly implemented by the banks, which is why the services offered are geared towards these benefits, offering a wide range of financial operations. It is possible to carry out transactions, buy capital funds and shop online; in short, it is possible to use all the bank’s services anytime, anywhere. With NFC technology for example, the use of cash in Norway is declining.

Norway has opened its doors to a trend that will gradually expand with increasing force. And when analysing cases of success, we must look to Northern Europe.