Identity Management and digital services with e ID Lessons from the past and key success factors

1. Identity Management and digital services with e ID Lessons from the past and key success factors HENRI DELAHAIE CODA STRATEGIES President Presentation to « Reaping the benefits of eID in different business sectorswithin the EU and beyond » e ID Workshop Brussels September 29, 2011 CODA STRATEGIES Telephone: +33 1 30 30 74 60 | Fax: +33 1 30 30 34 40 Internet: www.codastrategies.com

2. Agenda Electronic ID for which applications? Pros and cons for an universel Eid solution Critical survey of the current roll out of eID Place of banking institutions within national roll out Advantages and inadequancies of public e-ID for private and commercial needs A concerning observation: a lack of dynamism Possible solutions designed by the national experiences

3. 1. Electronic ID for which applications? eID Proof of identities for official purposes eID Proof of identities for private and commercial purposes, on line services and esignature eID Proof of identities for public purposes, on line services and e-signature BASIC report 2010 Benchmark on national EID roll out On whichextent the same solution couldbeused or at least the same architecture? Survey on 10 European countries Analysis of roll out conditions, usage, public and privatestrategies

4. 2. Pros and cons for an universel Eid solution • Rational requirements • Fair application of regulation (Banking, insurance, gambling…) • Reduction of fraud • Simplification of administrative process • Objective advantages • Sharing of investments for identification (infrastructure and end users) • Sharing of promotion costs for all applications • Benefitsfromdynamics of usage (public and private) • Legalidentityrules • High level of proof (certified signature) • New ecommerce and digital applications • Common fears • Control of activities by third party (public or private) • Clients’ reaction to the proposed organisation • Cost of the public solution • Non participation to the governance of the solution

5. 3. Critical survey of the current roll out of eID STARTING CONDITIONS RESULTS • Fairresults for infrastructure roll out (a lot of publications on this item) • Low usage for public affairs • Lack of potentials for public applications (one time per year, one time per month) • Poorinvolment of commercial interestswhenauthorised • A few success on a few countries (e-voting, e-ticketing..) • Cautious about new end usersterminals (mobile phones, Ipad) • Lack of transparency on figures (not expectedwithin the public governance of the project but challlengedwith the costs and opportunities of such programs) • Impact on the bankingstrategy (ok for parallelaccess, ko for substitution) • E ID for official purpose (police, access to official services) • E-governementpurposes • Public applications not selected in relation with volume of transaction • Questions about electronic signature for official and public needs • Very few business usage whenauthorized • Some public and bankinggovernance on eID in several countries • Free to use or not (principle of equaltreatment of citizens)

6. 4. Place of banking institutions within national roll out • Various models for linking Public Eid and banking identification solutions • Questions about the balance between both approachs • Impact of more stronger authentification regulation for online transactions for banking security reasons • Impact of the 4th Laundering Directive, operators are supposed to make strict checks on the identity of the person (equivalent of a physical presence)

7. 5. Advantages and inadequancies of public e-ID for private and commercial needs Dependence on the public roll out + Legalstatute of the identification - Possible control of business National dynamics on EID Possible control of end- users Sharing of costs Public image Conditions for success Universal image of the service Banking involvement Embedded data for value added services Sharing of technical and commercial management of the system Transparency rules for business and end users Universal devices

8. 6. A concerning observation: a lack of dynamism • Slow roll out of public applications • No incentive to use public applications • Weakpotential volume in the public sector • Lack of politicalwill to promoteinnovative solutions (cfCheckdoc in Belgium) • Authentication and signature applications essentiallyused in the banking world, supportedin some countries. An overallnegative Europeandiagnosis • Initial developmentsmanaged by public funds • More focused on approach to applications than application usage • In the best case scenario, balancedfinancial management for public applications • No advantagefromsecuring transactions withprivatepartners Absence of a credible business model

9. 7. Possible solutions designed by the national experiences • Implementation of public-private partnerships (NemID, DK) • Public applications approach with quantified targets • Private actor interference with getting value out of development of secure access and transactions (Germany?) • Reflection on the consideration of virtual identifiers associated with the real identity • Enhancement of protective elements of privacy in the envisaged devices • Complimentary multi media logic • Responsibility of service providers in case of identity theft Developmentmodel • Establishment of strong incentives for public use • Sharing the cost of deployment on the basis of sharing the gains in transaction security • Promotion of secure applications by all stakeholders • Pricing of services to consumers to secure critical applications involving their responsibility (online gaming ...) • Penalties on service providers not applying strict regulation on electronic identification (insurance, financial sectors, gambles…) Possible business model

10. Thank you! Henri Delahaie President CODA Strategies +33 1 30 30 74 60 henri.delahaie@codastrategies.com