Comparing BankID and its alternatives

BankID, eID, FrejaID

BankID is part of everyday life in Sweden. The average citizen and resident uses it several times a day. With it being so ingrained, it can be easy to overlook that there are alternatives in the market.

4 reasons to consider BankID alternatives

While BankID is the leading digital ID solution in Sweden, it may not meet every business requirement. Depending on your growth strategy and user base, you might need a more flexible identification service.

1. Support users without a Swedish personal identity number
BankID requires a Swedish personal identity number. If your business serves international customers, expats, or temporary residents, you need an alternative like passport scanning or international eIDs to ensure you don’t turn away valid users.

2. Scale Internationally with one solution
Managing different ID providers for every country is complex. By choosing a global provider instead of a local one like BankID, you can use one API. It helps you verify users across many markets and makes expansion easier.

3. Access deeper KYC and onboarding data
Standard BankID transactions provide limited data. Alternative Know Your Customer (KYC) solutions often offer richer data sets, such as PEP (Politically Exposed Person) and Sanction list screening, which are essential for high-security financial onboarding.

4. Verify identity at the organizational level
BankID is tied to individuals. If your workflow needs business-to-business (B2B) verification, you need a platform that supports it.For example, it should verify a company signatory’s authority.It should also support organisational identity and legal entity checks.

Potential alternatives to BankID

Freja eID

Freja eID is becoming a strong option in the digital ID market. It offers a full solution that competes with BankID. It provides secure and reliable identity verification, supported by biometric methods and document checks.

Freja eID’s flexibility and cross-border capabilities make it an attractive option for businesses operating in multiple countries. Its compliance with European data protection standards further enhances its appeal as does the organisational ID option.

Biometric ID

Biometric identification methods, such as facial recognition and fingerprint scanning, offer significant advantages in terms of security and convenience. They provide a high level of accuracy and are difficult to replicate, making them ideal for secure identity verification.

However, biometric methods also have their drawbacks. Concerns about privacy and data security can deter users, and the technology may not be universally accepted or available in all regions. Furthermore, there have been concerns about things like deep fakes and other ways of bluffing these systems although they are of course ever-changing in order to minimise these risks.

Cross-border IDV solutions

Cross-border solutions (Onfido etc) are designed to facilitate identity verification across different countries, providing a unified system for international transactions. These solutions leverage biometric and document verification to ensure compliance with international standards.

While cross-border solutions offer significant advantages, they also face challenges related to regulatory compliance and infrastructure compatibility. As the market evolves, these solutions are expected to become more prevalent, sophisticated and uniform.

Comparison criteria

On top of considering why you may need an alternative to BankID, you should consider what are the important factors that come into play when choosing one. We’ve chosen a few examples below to help narrow it down.

Security measures

Security is of course paramount when evaluating digital identification solutions. BankID employs advanced encryption techniques and multi-factor authentication to ensure the safety of user data. It is designed to prevent unauthorised access, making it one of the most secure options available.
Alternatives like Freja eID also offer robust security features and options, including biometric verification and document checks, which can enhance the identification process. These measures not only protect user data but also ensure compliance with European data protection regulations and give more options in the process.

User experience

User experience is a critical factor in the adoption of digital identification systems. BankID is renowned for its simplicity and ease of use, allowing users to access services with minimal hassle. Its integration with various platforms ensures a seamless experience for users.

Freja eID has a user-friendly interface that is also intuitive and easy to navigate, supporting multiple languages and offering a mobile app for convenient access. So if UX is one of your main criteria, Freja eID may be a viable alternative, should it check other boxes on your list.

Market penetration

BankID dominates the Swedish market, with a significant majority of the population using it for digital identification. Its widespread acceptance and integration into various services make it a formidable player in the digital identification space.
Freja eID is gradually gaining traction, particularly among non-Swedish nationals and organisations looking for cross-border solutions. Its ability to cater to a diverse audience and offer additional functionalities makes it a compelling alternative to BankID.

Freja vs. BankID

BankID‘s strengths lie in its security, reliability, and widespread acceptance. It offers a seamless user experience and is backed by robust security measures, making it a trusted choice for digital identification.

However, its limitations include a focus on Swedish citizens and residents, which may exclude non-nationals. Additionally, its reliance on banking infrastructure can be a barrier for some users.

Freja eID offers a broader scope of services compared to BankID, including cross-border capabilities and support for non-Swedish nationals. It provides a user-friendly interface and robust security features, making it a strong alternative.

While Freja eID is gaining popularity, BankID’s entrenched position in the market means it remains the go-to choice for many users. The choice between the two often depends on specific needs and preferences. For example, Freja OrgID allows organisations to enable their employees to confirm their identity without tying it to their personal identity, with management of these organisational IDs being centralised and simplified by Freja ID.

Evaluating biometric solutions

Biometric solutions offer a unique approach to digital identification, combining convenience with high security. They are particularly useful in scenarios where traditional identification methods are impractical or unavailable.
However, the implementation of biometric solutions requires careful consideration of privacy concerns and technological limitations. As the technology advances, it is expected to become more widely adopted so even if this isn’t your choice today, it is worth keeping an eye on the evolution of the market and available solutions.

Choosing the right solution for your business

When selecting a digital identification solution, businesses should consider their specific needs and the requirements of their target audience. Factors such as security, user experience, and market penetration are crucial in making an informed decision .
Freja eID, BankID, biometrics and cross-border IDV solutions each have their own strengths and limitations. Evaluating these options based on business objectives and user preferences will help determine the best fit.

Future trends in digital identification

The digital identification landscape is evolving rapidly, with new technologies and solutions emerging to meet changing demands. Biometric methods and cross-border solutions are expected to play a significant role in shaping the future of digital identification.
As the market continues to grow, businesses must stay informed about the latest trends and developments to remain competitive and secure. Embracing innovative solutions will be key to navigating the complexities of digital identification.

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Comparing BankID and its alternatives

4 reasons to consider BankID alternatives