Earlier this month, the EU unveiled plans to introduce a bloc-wide digital identity wallet as Covid-19 continues to turbocharge digital adoption by consumers and businesses alike. If approved, the wallet will enable citizens to store their passwords, bank accounts and official documents, such as their driver’s licence, all in one place.

While the announcement has been the subject of heated discussion on its potential design, deployment and accessibility — and, to some extent, raised questions about data privacy — the immediate benefits are clear, including helping to foster financial inclusion and simplify cross-border bureaucracy. The announcement marks an important step in setting the direction of travel necessary to support innovation in financial services across the bloc, improving harmonisation and allowing users to exert greater control over their data.