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Introduction: The New Era of Secure Digital ID Verification
Bank onboarding and Know Your Customer (KYC) processes have long relied on manual identity checks - scanning physical IDs and performing liveness tests. As digital services expand, these outdated methods face threats from AI-driven fraud and create friction for users. The rise of ISO 18013–7 compliant mobile driver’s licenses (mDLs) is set to change this, offering a secure, user-centric approach to digital identity verification for banking worldwide.
How ISO 18013–7 mDLs Work in Banking
ISO 18013–7 is an international standard that ensures interoperability and security for mobile driver’s licenses. mDLs allow users to store a digital version of their government-issued driver’s license on their smartphone, which can be presented and verified instantly during online bank account opening. This standard supports strong encryption and privacy-preserving data sharing, making mDLs ideal for remote KYC and digital onboarding.
US Adoption: Market-Led Innovation and Big Tech Integration
The United States is witnessing a market-driven shift toward mDL-based KYC. Major banks like U.S. Bank and Chime are piloting mDL integration for online account opening. Apple’s “Verify with Wallet on the Web,” announced at WWDC 2025, now lets users share verified identity data from their state-issued mDLs in Apple Wallet directly with participating websites. This move, combined with ongoing collaborations between state DMVs and cybersecurity agencies, is accelerating mainstream adoption of secure digital credentials.
Australia: Gradual Transition to Digital Identity in Banking
Australia leads in regulatory approval of digital driver’s licenses for KYC, with acceptance since 2019. However, many banks still depend on manual digital processes, such as uploading ID photos and performing liveness checks. Institutions like ANZ Bank have started deploying intermediate solutions (e.g., eVerify), but the sector is moving towards fully integrated ISO 18013–7 digital identity platforms. This transition will support more automated, secure and user-friendly onboarding experiences.
Europe: Regulatory Push with the EU Digital Identity Wallet
Europe’s approach is shaped by regulation. The EU Digital Identity Wallet, mandated by eIDAS 2.0 legislation, will soon allow residents to store mDLs and other digital credentials on their devices. Large-scale pilots involving banks and public agencies are testing these solutions for banking and payments. By 2026/2027, banks will leverage unified, high-assurance digital identity verification, shifting their focus from compliance to delivering innovative, trusted digital services.
The Future of Bank Onboarding: Seamless, Secure and Global
As ISO 18013–7 mDL adoption accelerates, the days of high-friction KYC are numbered. Whether driven by market forces, regulatory mandates or gradual digital transformation, banks across the world are preparing for instant, one-tap remote identity verification. This evolution will not only enhance the user experience but also strengthen security and privacy across the digital economy.
To explore more about how ISO 18013–7 and mobile driver’s licenses are revolutionizing banking, find out more on https://www.corbado.com/blog/iso-18013-7-mdl-bank-kyc-onboarding.
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