Self-Sovereign Identity in Banking: When the wallet replaces the letter

Anyone who has ever lost access to online banking will be familiar with the situation: a new smartphone, forgotten login details, an activation code sent by post – and the account remains digitally locked for a few days. It is precisely at these points of disruption that the potential of a government-issued E-ID in combination with Self-Sovereign Identity (SSI) in banking becomes apparent. Instead of an abstract digitalisation programme, an identity infrastructure is emerging that measurably simplifies, speeds up and secures processes.

At the E-ID & SSI Event 2026, Stefan Knaus, Senior Consultant at the Business Engineering Institute St. Gallen and Co-Director of OpenBankingProject.ch, outlined how over 40 financial institutions are developing and testing specific E-ID and SSI use cases. The focus is on four typical situations from everyday banking: opening an account, restoring access to online banking, identification at a branch, and new payment methods in e-commerce and m-commerce. The common thread: E-ID becomes a verified "anchor" within an SSI wallet, reducing media discontinuities, replacing manual checks and shortening waiting times.

The starting point is a multi-stage "Proof of Value for the Use of Swiss e-ID", within which banks define their role in the emerging SSI ecosystem: as verifiers of E-ID data, as issuers of their own verifiable credentials, as potential wallet providers, or as users of a new, decentralised trust infrastructure. In this context, around 50 potential use cases have been identified and prioritised – ranging from traditional onboarding scenarios to new, data-driven services.
A survey conducted at the end of 2025 shows that most institutions do not regard E-ID and SSI as a marginal issue: Many are planning to use them in selected processes, whilst others are already considering issuing verifiable credentials themselves and thus becoming part of the ecosystem. Building on the Proof of Value, prioritised use cases are being implemented as Proofs of Concept and gradually transitioned towards productive operation. The key question is no longer whether the technology works, but whether it generates tangible benefits for banks and customers in everyday life.

1. Account opening: Onboarding with verified identities

When opening a digital account, an E-ID in the SSI wallet replaces lengthy forms, scans of ID documents and manual checks. During the onboarding process, customers select the "Swiss E-ID" option, open their wallet and can clearly see which details the bank is requesting – such as personal data, place of residence and a photo. Once explicit authorisation has been given, the verified data is transferred as credentials, whilst a liveness check links the E-ID photo to the real person in front of the camera. The result: fewer manual entries, fewer media breaks, a higher level of security and an onboarding process that can be completed in just a few, clearly guided steps.

2. Restoring online banking: Re-identification without paper

For re-identification in online banking, the combination of E-ID, wallet and biometric verification is becoming particularly tangible. At present, password resets and device changes often result in activation letters and service interruptions lasting several days. In the SSI scenario, when regaining access, customers select the E-ID option, authorise selected attributes such as surname, first name, date of birth and photo via the wallet, and confirm their postal address. A liveness check ensures that the correct person is carrying out the process. Access can be restored in minutes – using a combination of knowledge, possession (wallet/E-ID) and biometrics, and with significantly less effort required on the part of both the bank and the customer.

3. Visiting a branch: Identification via wallet instead of typing in ID details

SSI is also reducing manual work in branches. In a "walk-in" scenario, the identification process is initiated by scanning a QR code. Customers scan the code using their digital wallet, check the requested details and approve them. The bank cross-checks the data against its own systems and supplements this with a visual check by the adviser. This eliminates the need to manually type in ID details, reduces the risk of errors and ensures the process remains familiar to everyone involved. Personal advice remains the focus, whilst the wallet handles the administrative side.

4. A2A payments: chains of trust using verifiable credentials

The fourth use case demonstrates how SSI goes far beyond mere identification. Account-to-account payments are secured via verifiable credentials: the retailer and the bank are part of the same trust infrastructure, payment requests and confirmations are available as signed records, and a SIC payment is processed in the background. Because both companies are uniquely registered and identifiable, the risk of fraud is significantly reduced. At the same time, this creates a foundation for new payment processes in which trust no longer needs to be established via additional channels or proprietary solutions, but rather through standardised digital chains of trust.

From a technical perspective, E-ID, SSI wallets and verifiable credentials represent a major step forward. However, the crucial factor is whether customers recognise a direct benefit. They do not use E-ID because it is part of an SSI ecosystem, but because it allows them to open an account more quickly, regain access to online banking straight away, or identify themselves easily at a branch. For banks, this means that E-ID and SSI should not be hidden away as an additional option deep within the process, but should be visible where friction currently arises – such as when data has to be entered repeatedly, when customers have to wait for letters, or when payment processes are unreliable.