German Banks Urge Faster Digital Wallet Rollout

German Banks Urge Faster Digital Wallet Rollout

Germany’s banking association is urging accelerated progress on the nation’s planned digital wallet initiative, cautioning against repeating shortcomings experienced with the digital functionality of the national identity card.

Heiner Herkenhoff, Chief Executive of the Association of German Banks, emphasized that the wallet represents far more than a simple application. He stated that a functioning digital ecosystem is crucial, requiring early and comprehensive collaboration between government, the private sector and civil society. “The experience with the eID function of the national identity card demonstrates that those who join the process late risk missing out on opportunities” he explained.

The banking association is calling for increased commitment to the project. “We, as banks, have been involved for some time, but a vibrant ecosystem also requires the participation of authorities, industry and commerce” Herkenhoff asserted. “Now is the time to lay the foundations. The earlier everyone participates, the greater the chance that the wallet will launch in 2027 as an attractive and practical offering.

While acknowledging the new German government’s serious approach to the initiative, Herkenhoff expressed a desire for greater momentum. He highlighted the importance of the recently established Digital Ministry and its role in consolidating resources and responsibilities. “Reliable timelines, clear responsibilities and sufficient budget are now essential to ensure the seamless integration of technology, legal frameworks and all relevant stakeholders” he said.

Herkenhoff views the timeline established by the European Union-requiring member states to offer a European Digital Identity Wallet by early 2027-as achievable. He believes a phased rollout in Germany, potentially beginning with limited features, is realistic. “The greater challenge lies in integrating all stakeholders early and smoothly into the ecosystem” he noted. “If we begin now with consistent effort, the wallet can gradually assume more and more functions.

The digital wallet project is governed by the EU’s eIDAS regulation (Electronic Identification, Authentication and Trust Services), mandating that each member state offer a European Digital Identity Wallet-or EUDI Wallet-by early 2027. The wallet will digitally store documents such as national identity cards and driver’s licenses. The wallet’s development is currently underway through a competitive process overseen by the German Federal Agency for Disruptive Innovation (SPRIND).