In practice, BankID represents an alternative to eID cards or data boxes, which are not very popular among physical individuals who do not run businesses. It expands the national system for electronic identification (National Point for Identification and Authentication - NIA), a state product that operates within eGovernment. By connecting to NIA, partner banks become qualified identity managers (Identity provider - IdP). Providing electronic identity (eID) is free of charge, and the client is entitled to it if they meet the legal conditions. After verifying their documents, the client creates an eID linked to NIA, for example, through access to their internet banking. However, it is likely that in the future, it will be possible to obtain an eID without the need to open a bank product.
During 2021, we expect most of the large and medium-sized banks operating in the Czech Republic to launch the service.
The main goal of linking eGovernment and banks is to support digitization in the Czech Republic and the adoption of eGovernment services in society. This project, therefore, represents several effective solutions for banks. In addition to clear support for digitization, banks have access to the current basic personal data of their clients, who no longer need to inform individual providers when changing. Access to verified client information also simplifies onboarding clients at branches, allowing employees to allocate saved time to activities with higher added value.
The four basic pillars of BankID are: security (the service uses a proven and secure way for customers to log in to their bank account), simplicity (the service unifies logging in with one login method for government websites or selected e-shops), accessibility (logging in or verifying bank identity is provided free of charge by banks, although banks may charge businesses for providing customer authentication services), and flexibility (one of the most significant benefits is that clients can handle a range of official matters from anywhere, such as directly from their living room via mobile, PC, or tablet).
Currently, the service is mainly focused on the public sector, where clients can choose from a range of approximately 200 different services. These include verifying the validity of documents such as ID cards, passports, driver's licenses, or data registered in the population registry, an overview of the driver's point system, e-prescriptions, or setting up a data box where extracts from business, criminal or public registers are available. BankID users can also electronically apply for social benefits or register with the Employment Office through the Ministry of Labor and Social Affairs.
In the near future, banks plan to provide identity services to private service providers such as energy suppliers or telecommunications operators. The service will develop and gradually reveal new possibilities for all its customers.
Regarding security, banks provide clients with clear information about when and where the client logged in and what data was transferred through BankID. To verify identity, the user is redirected from the third-party website to the verification provider, so the user does not enter their login information outside the bank, and there is no room for abuse.