Financial institutions are at the forefront of the struggle of maintaining trust and accountability in digital interactions with customers. Identity fraud, through schemes such as account takeovers, fraudulent applications, social engineering, and synthetic identities have resulted in billions of dollars in losses impacting financial institutions. These challenges exist both for transactions made in person and online.
For the first time, financial institutions have access to a government-issued, cryptographically signed identity credential that ensures the authenticity of customer data at the moment of verification—whether online, in-branch, or via self-service channels. The Mobile Driver’s License (mDL) is a digitally verifiable, fraud-resistant identity document that eliminates reliance on scanned IDs, insecure OTPs, or physical document verification. Properly implemented, mDLs not only raise the level of assurance for high-risk transactions but also significantly enhance user experience across all banking touchpoints, streamlining everything from account onboarding to high-value transaction approvals.
Banking & Financial Services Use Cases
In Person Presentation of the mDL
- At a Bank Teller for Common Banking Activities (Check Cashing, Withdrawal, Cashier Check)
- In a Branch with a Representative for Account Opening, Loan Application, Commercial Account, Retirement Portfolio Review
- At a Bank Drive-Thru for account access and transaction authorization
- For Self-Service Transactions at an ATM or Kiosk without needing a physical card
- In-Branch Video Conferencing for remote expert consultations
- ID Verification for Notarial Acts to eliminate paper-based document scanning
- High-Value Transactions & Fund Transfers requiring physical identity verification
- Corporate & Business Banking Transactions to authorize signers or approve wire transfers
Online Presentation of an mDL
- Mobile and Online Account Opening fulfilling required information for KYC (Know Your Customer) compliance
- High-Value or High-Risk Transaction Authorization for:
- Wire transfers / ACH / P2P transactions
- Changes to linked bank accounts
- Updates to security settings (passwords, MFA methods), address
- Freeze / Unfreeze Credit Records using mDL as a second factor instead of OTPs via SMS / email / calls
- Address Verification for account updates without document uploads
- Digital Document Signing & Remote Notarization eliminating the need for in-person verification
- Secure Online Loan / Mortgage Applications using mDL instead of manual identity proofing
- International Banking & Cross-Border Transactions to streamline ID verification for global wire transfers
Strengthening Security & Compliance with mDL
- Integration with Open Banking & PSD2 Compliance to provide secure, verified Strong Customer Authentication (SCA)
- Replacing OTPs with Secure mDL Step-up Verification to prevent social engineering attacks
- Enhancing Regulatory Compliance signals for KYC & AML (Anti-Money Laundering) frameworks
- Offline Verification Capabilities for use cases like ATMs and branch verification without internet access
- Multi-Factor Authentication (MFA) with mDL combining biometric verification for maximum security
Resources for Financial Institutions
The white paper discusses the challenges financial institutions face in maintaining trust and accountability amid rising identity fraud. It advocates for the adoption of mDL as a secure digital identity document, highlighting their potential to enhance identity verification and reduce fraud.
Financial institutions require strong identity verification and authentication for customers to access services like balance inquiries, withdrawals, loan applications, or notarization. The Mobile Driver’s License (mDL) offers a secure digital solution to improve customer experience, safeguard interactions and ensure compliance. The mDL transmits verified identity attributes, based on attributes and identity proofing done by the issuing government agency, directly from the individual holder of the identity to the financial institution.
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