Digital credentials: what they mean for banking onboarding controls

TL;DR: Digital credentials are shifting regulated onboarding from repeated, organisation-bound verification to portable, cryptographically verifiable proof that can move across services and borders, according to IDnow. For IAM and identity governance teams, that changes how attributes, evidence reuse and data minimisation are designed into onboarding rather than bolted on later.

Editorial analysis by NHI Mgmt Group, based on content published by IDnow: “The Credential Is the New Passport.”.

Key questions

Q: How should banks handle portable digital credentials in regulated onboarding?

A: Banks should treat portable credentials as governed evidence inputs, not as a drop-in replacement for every existing check.

Q: What is the difference between a verifiable credential and a traditional document check?

A: A traditional document check relies on local review of evidence that is usually recreated for each organisation.

Q: Why does selective disclosure matter in identity architecture?

A: Selective disclosure matters because most relying parties do not need a full identity record to complete a transaction.

Practitioner guidance

• Define accepted credential sources List which wallets, issuers and attestation types are acceptable for each onboarding journey, then apply that policy consistently across channels.
• Map onboarding requests to minimum attributes Replace document-first workflows with attribute-first requirements so teams request only the specific proof needed for the regulated purpose.
• Align revocation handling with trust decisions Build processes for expired, suspended or revoked credentials so acceptance checks fail closed when provenance can no longer be trusted.

Bottom line: Digital credentials move the governance focus from repeating identity checks to accepting and validating portable proof.

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