Electronic for the People: Technology and Trust at the Forefront as Digital ID Gains Momentum
By Ian Hall, August 22, 2025
At the Global Government Fintech Lab 2025, held recently, a pivotal panel session titled ‘Who goes there? Exploring digital ID schemes and fintech-enabled innovation’ provided valuable insights into how governments across the globe are advancing digital identity (ID) initiatives. These endeavors aim to enhance public service accessibility and reduce fraud by leveraging cutting-edge fintech solutions.
The Rising Tide of Digital ID in Government
The momentum behind digital IDs is palpable, especially in the European Union (EU), where all 27 member states are mandated to offer an EU Digital Identity Wallet (EUDI Wallet) to citizens, residents, and businesses by the end of 2026. This wallet is designed to serve as a standardized, secure, and convenient means for verifying identity online within and across borders.
Meanwhile, the United Kingdom, though no longer part of the EU, is forging ahead with its own digital ID initiatives. The launch of a new GOV.UK smartphone app featuring a digital wallet will, in the future, enable users to make payments to government services seamlessly. Complementing this, the Centre for Finance, Innovation and Technology (CFIT) is focused on developing a digital company ID to bolster trust and efficiency in financial services.
Ireland’s Digital Identity Advancements
Barry Lowry, Chief Information Officer for the Irish Government, opened the panel discussion, shedding light on Ireland’s strides in digital ID development. Ireland is actively working to implement a digital identity wallet in compliance with the EU’s eIDAS 2.0 regulation—the legislative framework underpinning the EUDI Wallet.
Currently, Ireland offers a voluntary digital ID system known as MyGovID, which facilitates user access to online public services. In 2025, the government piloted a digital wallet program among civil servants, requiring verified MyGovID credentials and smartphones for participation. A limited public launch of this wallet could occur by year-end.
This initiative aligns with Ireland’s broader national payments strategy, a comprehensive government plan outlining 16 ‘future outcomes’ including widespread availability of a safe, easy-to-use, EU-certified digital identity wallet.
Italy’s PagoPA and the ‘IO’ App
Italy’s contribution to the panel was delivered by Pietro Stroia, Head of Technology at PagoPA, a state-owned entity that manages electronic payments to public administrations. Central to PagoPA’s suite is the IO app, which supports two-way communication between citizens and government bodies.
The IO app pioneered the integration of the EUDI Wallet concept through its ‘Documenti su IO’ feature launched in December 2024. This function allows users to store secure digital versions of official documents such as driving licenses, health insurance cards, and disability cards.
PagoPA also collaborates closely with the Italian Department for Digital Transformation on the EU’s Large Scale Pilots (LSP) initiative—an extensive European Commission program testing the practical implementation of the EUDI Wallet across member states, with multiple pilots already completed or underway.
Germany’s Digital Transformation and Wallet Development
Laura Körber, policy officer at Germany’s Federal Ministry of Finance, discussed the German government’s ongoing efforts to advance digital ID amid significant departmental restructuring. The new Federal Ministry for Digital Transformation and Government Modernisation (BMDS) consolidates responsibilities from six ministries to streamline digital initiatives.
Körber emphasized Germany’s commitment to the EU digital identity wallet effort while fostering an environment of healthy competition by encouraging private sector digital wallet solutions alongside a government-issued option. Her portfolio also focuses on how digital ID can transform financial markets — including payments, open finance, and bank account onboarding processes.
The UK’s CFIT and Digital Company ID
Rob Haslingden from the UK’s Centre for Finance, Innovation and Technology (CFIT) brought a unique perspective as the UK navigates digital identity post-Brexit, outside EU regulatory frameworks like eIDAS 2.0. CFIT, backed by £5.5 million in seed funding from HM Treasury and the City of London Corporation, seeks to advance fintech innovation in the UK’s public and private sectors.
Earlier in 2025, CFIT introduced a blueprint for digital company ID aimed at combating financial crime and streamlining small business access to finance by making company verification more robust and efficient. Three industry-led working groups are developing a prototype digital company ID, defining use cases, and establishing trust and governance standards.
Haslingden highlighted how improved digital identity frameworks can reduce inefficiencies in onboarding processes for financial institutions—an advantage for both banks and their clients. He remarked, “Identity is a key enabler of interoperability,” underscoring the foundational role of secure digital ID in fintech ecosystems.
Building Trust through Technology
Across the panel’s discussions, trust emerged as a crucial pillar underpinning digital ID initiatives. Governments recognize that for digital wallets and identities to be widely adopted, citizens must be confident in the privacy, security, and reliability of these systems. Likewise, seamless technical interoperability — both within and between nations — remains a significant challenge but one that fintech innovation is helping to address.
Looking Ahead
Digital identity is rapidly transitioning from concept to everyday reality for millions across Europe and beyond. As governments harness technological advancements and foster collaboration with the private sector, digital IDs promise to revolutionize how citizens engage with public services, safeguard personal data, and prevent fraud.
The Global Government Fintech Lab continues to be a vital forum for sharing knowledge, best practices, and innovations driving this transformation. With the active participation of diverse stakeholders, the future of digital identity looks secure, user-centric, and inclusive.
For more information on digital identity initiatives, fintech innovation in the public sector, and policy developments, visit the Global Government Fintech Lab website.
