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Insights and trends shaping the future of compiliance

Explore spektr, insights and trends shaping compliance's future.

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spektr – Blog

Is perpetual KYC (pKYC) just a buzzword that’s taking the compliance scene by storm, or does it actually hold value that could change the game for you and your compliance team? At spektr, we firmly believe it’s the latter. pKYC shouldn’t be deemed just a “nice-to-have” anymore – it’s a game-changing necessity for compliance teams striving to stay ahead of risk and regulatory demands.

Why Perpetual KYC Isn’t Just a Buzzword

Risk isn’t static. Just because a customer was deemed low-risk during onboarding doesn’t mean they’ll stay that way. Transactions change, external conditions shift, and behaviors evolve. Unfortunately, relying on periodic KYC to catch these changes often means risks go unnoticed for months — or longer. 

pKYC helps to eliminate these blind spots. By enabling 

, it ensures that compliance teams can track critical shifts as they happen, which means no more waiting for the next scheduled KYC review to uncover an issue that should’ve been flagged months ago.

Considering changes happen all the time, why should KYC reviews be confined to intervals of months or even years? This proactive, real-time approach is what makes pKYC such a vital tool. Ultimately, pKYC flips the script, giving compliance teams the power to tackle changes head-on the moment they happen. 

During the intervals in periodic KYC reviews, key changes in a customer’s profile – such as shifts in ownership, significant transactions, or inclusion on a sanctions list – can go unnoticed. Such a delayed detection leaves organizations exposed to compliance risks, potential regulatory violations, and reputational damage.

This is where solutions like spektr step in with pKYC to bridge the gaps left by periodic reviews:

So, to answer the question we posed at the very beginning of this article: no, pKYC isn’t just a buzzword, even though it’s being used more and more amongst compliance professionals. Its tangible worth whittles down to gaining 24/7 oversight, being updated as and when critical changes take place, and making sure your teams aren’t faced with large amounts of data that have piled up over a concerning period of time. 

The compliance landscape is changing rapidly, and so are the risks. With the sheer volume and speed of financial data today, traditional periodic KYC isn’t enough to keep up. pKYC ensures that compliance teams are able to remain agile and prepared for whatever comes next.

Speaking of what comes next, are you curious how spektr can reshape your compliance processes? 

 and see firsthand how spektr can help you move from periodic reviews to continuous monitoring that doesn’t wait for the next scheduled update to catch potential risks. 

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Perpetual KYC is transforming compliance, enabling real-time monitoring and risk management. Discover its significance for compliance teams.

Perpetual KYC: Lessons for Compliance Teams

What's been occupying our compliance attention lately? Here's a rundown of notable updates and regulatory happenings from the past weeks.

Central Banks Pioneer Compliance-by-Design in Cross-Border Transactions

, in collaboration with central banks from Australia, Korea, Malaysia, and Singapore, has demonstrated the feasibility of embedding regulatory compliance directly into cross-border transactions through a proof-of-concept initiative called Project Mandala. By integrating compliance-by-design principles, the project seeks to streamline regulatory processes, reduce transaction times, and enhance transparency in cross-border financial activities.

Mandala leverages a decentralized system with components such as peer-to-peer messaging, a rules engine, and a proof engine to ensure compliance checks are completed before initiating payment instructions. With successful use cases like cross-border lending between Singapore and Malaysia and capital investment financing between South Korea and Australia, Mandala automates key compliance requirements, including sanctions screening and reporting. It is designed to support both emerging digital asset systems and traditional platforms like Swift, paving the way for seamless and efficient cross-border payments.

SEC Charges JP Morgan Affiliates $151 Million for Regulatory Failures

The US Securities and Exchange Commission (SEC) has charged JP Morgan Securities and JP Morgan Investment Management Inc. (JPMIM) in five separate enforcement actions, 

. The charges stem from misleading disclosures to brokerage customers regarding private fund products, undisclosed financial incentives for recommending specific investment programs, and engaging in prohibited transactions.

Among the violations, JPMIM conducted $4.3 billion in prohibited joint transactions and executed 65 illegal principal trades worth $8.2 billion. Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, emphasized the firm’s violations across multiple business lines and its breach of investor protection laws. While JP Morgan did not admit to or deny the charges, the settlement includes voluntary payments to affected investors, reflecting an effort to address regulatory failures and conflicts of interest.

Hong Kong Monetary Authority Fines Fubon Bank HK$4 Million for AML Failures

The Hong Kong Monetary Authority (HKMA) has imposed a HK$4 million fine on 

 (AMLO). The fine follows a self-reported failure in the bank’s transaction monitoring systems and an HKMA investigation into its compliance controls between April 2019 and July 2022.

The HKMA found significant deficiencies, including the lack of effective procedures for monitoring business relationships, inadequate follow-up on a decline in transaction alerts, and failures to update customer due diligence after trigger events. Raymond Chan, HKMA's executive director for enforcement and AML, emphasized the critical importance of continuous and comprehensive monitoring to detect potential money laundering and terrorist financing activities promptly.

FinCEN Alerts Banks to Emerging Deepfake Threats in Financial Fraud

The US Treasury Department's Financial Crimes Enforcement Network (FinCEN) 

 about the rising use of generative AI-powered deepfakes in financial fraud. The alert highlights a growing trend of criminals deploying deepfake media, particularly fraudulent identity documents, to bypass ID verification and authentication processes.

To combat this, FinCEN has provided red flag indicators and typologies to assist financial institutions in detecting and reporting suspicious activity, in accordance with the Bank Secrecy Act. Director Andrea Gacki emphasized the importance of vigilance in safeguarding the financial system and protecting individuals from abuse by these advanced tools. The alert follows increasing reports of deepfakes being used not only for identity fraud but also in scams such as AI-generated cryptocurrency investment schemes on social media platforms.

Basel Committee Advances Basel III Implementation and Strengthens Risk Management Frameworks

The Basel Committee on Banking Supervision reaffirmed its commitment to fully 

, supported by the G20, as a cornerstone of global financial stability. Key updates include finalizing guidelines to enhance counterparty credit risk management, addressing vulnerabilities highlighted by recent non-bank financial intermediation (NBFI) distress. 

The Committee emphasized strengthening macroprudential policies, including guidance on positive cycle-neutral capital buffers, and continued work on climate-related financial risk disclosures under Pillar 3, slated for completion in 2025. These efforts reflect a unified push to fortify banking systems against emerging risks and ensure consistent global regulatory standards.

Australian Banks Collaborate on Real-Time Fraud Intelligence Sharing Network

Australia’s top banks—ANZ, CBA, NAB, Suncorp, and Westpac—are piloting a real-time fraud intelligence-sharing network powered by 

. The system analyzes behavioural and device data to flag risks in receiving accounts before payments are processed, enabling banks to block potential scams.

CBA’s James Roberts calls it a "world-first" for protecting Australians from financial fraud. However, NAB’s Chris Sheehan stresses the need for tech platforms and telcos to do more to prevent scams at their source, such as on social media and messaging apps.

At spektr, we understand that keeping up with regulatory changes and maintaining compliance can feel overwhelming. 

about your compliance needs and how we can customize solutions to match your unique business requirements! 

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Stay updated on the latest in compliance: explore regulatory breakthroughs, enforcement actions, and innovative fraud prevention strategies reshaping the financial landscape this month.

This Week in Compliance Vol. 10

Just a couple of weeks ago, we proudly announced spektr’s new ISO 42001 certification for responsible AI management, awarded by 

 – the world’s first certification body accredited to issue ISO 42001 certifications! 

Given this achievement, we wanted to take a moment to dive into what this certification means for spektr’s operations, as well as our clients. To highlight the significance of this milestone, we spoke with one of the driving forces behind spektr’s certification: 

, our Head of Business Analysis, who played an instrumental role in achieving this success.

Meeting the Highest Ethical and Operational Standards

AI adoption is exponentially increasing, with 72% of organizations reporting regular use of AI in 2024 alone, according to a 

. However, whilst AI can, and does, bring tremendous value, it does not come without risks. That’s where standards like ISO 42001 become pivotal for showcasing strong AI governance; it was created to provide a standardized foundation for organizations handling AI-related risks and controlling opportunities associated with these quickly developing technologies. This is what Grace had to say about achieving this latest ISO certification: 

Achieving ISO 42001 certification underscores spektr's dedication to responsible AI management. This certification ensures that our AI-driven solutions are developed, deployed, and monitored with the highest standards of accuracy and quality. This certification serves as a cornerstone of our commitment to transparency, quality, and ethical AI practices that align with our clients' and regulatory expectations.

So, what does ISO 42001 certification actually entail? Here are the key facets – which, in total, include 

 covering the AI system life cycle management, data management, and responsible use of AI systems:

For us, this means that our spektrAI setup (which we launched just a couple months ago) is now fully conforming to this benchmark International Standard – which should ultimately be a non-negotiable for any compliance tool within the marketplace. 

ISO 42001 certification is less about spektr, and more about instilling confidence in our clients as the primary audience of this third-party report. Being able to continuously prove that spektrAI can be leveraged to its fullest potential, whilst still complying with stringent security requirements, is the best outcome of this certification. As Grace rightly mentions: 

For our clients, ISO 42001 is more than a certification; it’s a promise. It assures that every AI-driven solution on our risk platform is crafted with precision, monitored with diligence, and improved continuously. This commitment empowers our clients to trust in the reliability and integrity of our products as they make critical decisions.

, Chief Executive Officer at Mastermind, the accredited certification body partner selected by spektr, emphasized the achievement:

Since our accreditation in July, we have had the privilege of working with some of the first organizations to adopt ISO 42001. Although this International Standard has been published for less than a year, we are already seeing a clear trend: organizations like spektr are elevating their existing management systems, originally built for ISO 27001, to also meet ISO 42001 requirements. 

The team at spektr embedded secure engineering and responsible AI principles into their products from the beginning, which made expanding their governance activities a natural progression.

 is not the end goal for spektr! We plan to continuously improve our product, ensuring that we are consistently able to meet the highest of expectations maintained by our clients– something they deserve when using our solution. As Grace remarks: 

Looking ahead, ISO 42001 certification is only the beginning of our journey towards responsible AI. With this management system in place, spektr is well-positioned to navigate the dynamic AI landscape confidently and responsibly. Our clients can expect ongoing advancements in risk management, driven by AI solutions that are not only innovative but also governed by stringent ethical and quality standards.

 for collaborating in order to make this achievement a reality! 

If you read this and thought, ‘Hey, I’d like to learn more about a platform that offers all of this’, feel free to 

 with one of our in-house pros! We’d love to get you up to speed with spektr’s industry-leading solution.

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We explore what spektr's ISO 42001 certification means for spektrAI & our clients, including responsible AI management and meeting the highest ethical standards

spektr’s ISO 42001 Certification: Responsible AI Management 

What are the biggest and most persistent challenges that compliance professionals in the fintech market are facing today? We got the opportunity to interview someone who knows the industry inside and out: 

. Lauren is a Senior Recruitment Consultant, exclusively working with risk and compliance, at QED Legal. Her years of experience have amounted to an intricate understanding of the relationship between financial institutions and compliance – which is why we teamed up with her to talk about compliance, fintech, and solutions such as spektr. 

Lauren has firsthand witnessed the struggles, trends, and opportunities that define the industry. In such a fast-paced and highly regulated environment, compliance professionals are under immense pressure to meet a host of regulatory requirements, maintain data security, all whilst attempting to be as cost-effective as possible. 

How have the demands on compliance professionals changed in the last few years?

The last few years have seen such a gigantic increase in compliance regulations, from the 2018 Data Protection Act to the EU Anti Money Laundering Authority (AMLA) being enforced last year. Compliance leaders and professionals are having to continuously adapt to a vast, varied and intricate global regulatory environment. 

This means compliance roles have expanded beyond the traditional regulatory alignment; professionals must now be experts in data privacy, money laundering, whistle-blowing, fraud, cyber security and more. Compliance functions can no longer be one person, they must be a team of experts who know their niche inside out. 

On top of this, pressures aren't merely best practice anymore, but preventing extremely high fines and reputational risk, having to pre-emptively address compliance issues before they even arise.

How do you specifically think that expectations of compliance professionals in the fintech market have changed?

I think the countless global scandals across multiple FinTech's have really helped highlight just how important compliance is in the FinTech space. The Wirecard scandal going to court and the FTX collapse in 2022 - makes you see just how much compliance functions need to change.

All the regulatory changes and increased global scandals has really increased expectations of compliance professionals, having to evolve drastically, keeping up with FinTechs rapid growth and complexity of their offerings. They're expected to act as strategic partners, whilst fostering innovation and keeping regulatory risks in check. 

Often operating in gray regulatory areas, they need compliance professionals who can implement agile compliance frameworks and scalable solutions to grow and keep pace with innovation. FinTechs need incredible investment, not only in finance, but knowledge and technologies to automate compliance functions.

Fintech’s Toughest Compliance Challenges

Who better to ask about challenges in the industry than someone who knows it like the back of her hand? 

Are there any particular challenges that you have seen compliance professionals persistently struggling with?

I think the biggest element is balancing regulations and effective compliance with the pace of growth that a lot of fintechs face. They're constantly evolving, having to offer new innovative products to stay ahead of the competition, can really cause issues in compliance. Compliance teams often find themselves limited by a lack of resources and legacy systems, having to push senior leaders to understand why they need to be investing in compliance.

An overarching theme that covers all compliance challenges, is the need to really embed a culture of compliance across the business, ensuring that all teams, not just compliance, are aligned with the regulatory goals of the business. It's a never-ending task, and honestly the number 1 reason people leave their roles.

The Two Cs: Compliance and Configurability

When relying on any kind of tech to help with compliance-related activities, flexibility is paramount. Each compliance process has its own unique complexities, and solutions should be adaptable to these specific needs, rather than forcing organizations into rigid, one-size-fits-all frameworks. That’s why compliance depends on configurable solutions, and spektr goes so far as to offer 

What do you realistically think can help alleviate some of these key challenges you mention? 

I think the biggest thing that needs to be looked at is solutions that are adaptable and can grow with your business as you continue to evolve and scale. One of the biggest issues compliance functions face is old outdated tools, or tools that just don't suit their business or their team.

What do you think the future of compliance in fintech will look like? 

With the rise of AI and smart technology that works around you and your needs, I think a seamless integration of technology automation and human expertise will be the key to the future of compliance. Automation will handle repetitive tasks and real-time monitoring, whilst specialised technology can provide deep insights and adaptable frameworks. 

However, the technology needs to work fluidly with compliance teams; AI and new smart tech can't work on it's own without ethical flaws, the symbiosis between tech and humans will be essential.

 for taking the time to give her valuable observations in this exclusive interview! Her insights have highlighted both the ongoing challenges, as well as the promising role of configurable compliance tech that is highly adaptable to distinct organizational requirements (such as spektr).

Curious how spektr can reshape your compliance processes? 

 today and see firsthand how hyper-configurability can save you time, reduce risk, and automate your compliance process.

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What are the biggest hurdles in modern compliance, and what is the best solution? We interview industry expert, Lauren Eager, to get the answers to these questions, talking specifically about effective compliance in the fintech space. 

The Biggest Hurdles in Modern Compliance: Interview with an Industry Expert

Starling Bank Fined £29M for "Shockingly Lax" AML Screening Failures

The Financial Conduct Authority (FCA) has 

 for serious lapses in its anti-money laundering (AML) and financial sanctions screening processes. Despite prior warnings from a 2021 review, the bank continued to open over 54,000 accounts for high-risk customers while using an automated screening system that failed to properly monitor those subject to financial sanctions. The FCA stated that Starling’s failures left the financial system vulnerable to criminal exploitation. The bank has since taken steps to address the issues and improve its financial crime controls, earning a reduced penalty. Starling has expressed regret and issued an apology for the oversight.

Axiom Bank Faces Enforcement Action from OCC for BSA/AML Failures

The Office of the Comptroller of the Currency (OCC) has taken 

 in Florida for its failure to adequately comply with the Bank Secrecy Act (BSA), anti-money laundering (AML) regulations, and poor risk management practices. The enforcement order requires Axiom to update its BSA/AML action plan, strengthen internal controls, and enhance its risk management strategies. This comes in the wake of TD Bank's recent $3 billion fine for similar failures, signaling increased regulatory scrutiny on financial institutions’ compliance with AML laws.

Swift Launches AI-Powered Real-Time Fraud Detection for Banks

, designed to help banks detect and prevent financial crime in real-time. The service, set to be available in January 2025, builds on Swift’s existing Payment Controls Service and leverages anonymized transaction data from its vast network to identify suspicious activities. The rollout follows a successful pilot with financial institutions across multiple regions. Swift has also been collaborating with member banks to explore privacy-preserving technologies, aiming to enhance fraud detection while maintaining data confidentiality. This initiative represents a significant step in bolstering the global banking sector’s defenses against increasingly sophisticated fraud tactics.

UK Treasury Proposes 72-Hour Payment Delay to Combat Fraud

The UK Treasury has introduced a new draft regulation allowing banks to 

 to investigate suspected fraud. The amendment to the 2017 Payment Services Regulations gives payment service providers the power to temporarily halt transactions when fraud is suspected, provided they promptly inform the payer and outline the next steps. This move comes in response to the UK’s escalating fraud crisis, with bank fraud losses surpassing £1 billion last year. The regulation aims to reduce the impact of scams, particularly Authorised Push Payment (APP) fraud, which has caused significant financial harm to UK consumers.

EBA Clarifies Procedures for Classifying Asset-Referenced Tokens and E-Money Tokens as Significant

The European Banking Authority (EBA) has 

 on the procedural aspects of assessing asset-referenced tokens (ARTs) and e-money tokens (EMTs) for significance, as outlined in the Markets in Crypto Assets Regulation (MiCAR). This framework includes the transfer of supervisory responsibilities from national competent authorities to the EBA, the establishment of supervisory colleges, and the harmonization of reporting obligations and timelines. The Decision provides a clear roadmap for managing the significance classification process and smooth transition of oversight duties, ensuring effective supervision of significant ARTs (s-ARTs) and significant EMTs (s-EMTs). The EBA will supervise s-ART issuers directly and exercise dual supervision for s-EMTs in coordination with national authorities.

Germany to Develop European Digital Identity Wallet for Secure and Convenient ID Management

The German Government has announced plans to 

 that will allow citizens to securely store their national ID cards and other official documents on a smartphone app. This move aligns with the European Union’s mandate requiring all member states to implement a standardized European Digital Identity Wallet (EUDI) by 2027. The EUDI wallet will enable users to verify their identity, prove their age, and sign documents electronically across the EU’s 27 countries. By offering a secure and convenient alternative to physical ID cards, the EUDI wallet aims to simplify processes like job applications and online banking, while safeguarding privacy and promoting digital inclusion. The initiative is being developed in collaboration with the Federal Agency for Disruptive Innovation and the Federal Office of Information Security.

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Keep up with the latest in financial compliance. Here's a brief look at key updates, from major AML lapses to AI-powered fraud detection. 

This Week in Compliance Vol. 9

Europe is on the brink of a new era of digital identification with the rollout of eIDAS 2.0 pending. This will inevitably have significant effects on the ways that citizens, businesses, and governments digitally interact. The eIDAS 2.O framework aims to introduce interoperable and secure digital identities across the EU, providing users with more control over their personal data. 

As such, this guide has been built to break down the components of eIDAS 2.0, offering a comprehensive overview of what this regulatory framework will mean for citizens, public administrations, and private companies. The guide will also unpack the regulatory and social significance of eIDAS 2.0, looking into its potential impacts in the coming years. 

 was published on the 30th of April 2024, entering into force on the 20th of May. This means that EU member states will be required to provide 

 to citizens shortly after the Implementing Acts have been adopted, with execution expected by 2026. The Implementing Acts will offer specifications, procedures, and standards for ensuring uniform implementation of the European Digital Identity Wallet. eIDAS 2.0 is an acronym for Electronic Identification, Authentication, and Trust Services 2.0. This update aims to offer a standardized framework for digital identities and trust services in order to lay the foundation for more streamlines and secure cross-border transactions. 

 "on electronic identification and trust services for electronic transactions in the internal market" (the “eIDAS Regulation”). The amendment pertains to expanding the scope of the original eIDAS Regulation to include a framework for the European Digital Identity Wallet, focusing on two key aspects: trust and interoperability. This amendment aims to introduce a secure, user-controlled digital identity wallet that citizens, residents, and businesses can use to access both public and private digital services across the EU by 2026. We will break down the some of the key facets of eIDAS 2.0 in subsequent sections:

eIDAS 2.0 is expected to bring a plethora of benefits for citizens, listed below. 

Opening a new bank account or submitting a job application can involve lengthy and complex processes. The EU Digital Identity Wallet aims to simplify access to public and private services, reducing the time and administrative effort needed. With a single click, users will be able to securely verify their identity or share important documents, such as a university diploma, making interactions more efficient and straightforward.

You remain in control of your data, with the ability to decide what to share and limit it to only what is necessary. For instance, you can share your age without disclosing your full date of birth, or confirm your driver’s license validity without revealing your address. 

This approach, known as selective disclosure of attributes, helps minimize the risk of your data being used for profiling. In certain cases, you will have the option to verify your identity completely anonymously, providing an additional layer of privacy and security.

eIDAS 2.0 aims to bring several benefits for public administrations, broken down subsequently. 

EU Digital Identity Wallets will offer public authorities cybersecurity-certified solutions, rigorously tested across Europe, to ensure safety and privacy in all transactions. These wallets are supported by robust technical standards, providing a high level of trust and security in every exchange.

The EU Digital Identity Wallets will expand the availability of digital public services, as all citizens will have access to electronic identification upon their launch and adoption. Their broad range of private sector applications will further encourage widespread use, creating a large user base that may drive greater engagement with digital public service offerings.

The adoption of EU Digital Identity Wallets will strengthen fraud prevention efforts. With every citizen and resident having access to a secure and private form of digital identification, identity fraud and impersonation will become significantly more challenging.

Lastly, eIDAS 2.0 will bring advantages to private companies in a myriad of ways. Here’s how:

Verifying customer identities can be expensive, but EU Digital Identity Wallets will offer a secure and reliable way to authenticate users across the entire EU. This will enable businesses to conduct a wider range of online transactions more efficiently, potentially increasing sales whilst lowering the cost of each verification.

With EU Digital Identity Wallets being secure and compliant with cybersecurity standards, businesses will be able to handle more sensitive customer transactions entirely online. This opens up new opportunities for digital services and expands the scope of secure business operations.

EU Digital Identity Wallets will serve as a neutral public sector authentication solution, removing the need to rely on private third-party providers. This reduces the risk of user data being used for profiling or other commercial purposes by external entities.

At the core of eIDAS 2.0 is interoperability, enabling qualified trust service providers (QTSP) and digital identities to be recognized and used across EU member states. Interoperability involves several components in the context of eIDAS 2.0.

Arguably, the cornerstone of eDIAS 2.0 is ensuring that eID systems from each EU member state are recognized and trusted by other member states. This also applies to accessing both public and private services across borders, meaning you can use your national eID anywhere in the EU. 

Interoperability isn’t limited to eIDs functioning across borders, it also includes guaranteeing that all national systems, platforms, and interfaces can effectively communicate with each other and exchange information through trustworthy means. This inevitably includes setting common technical standards, procedures, and formats (which will be outlined in the Implementing Acts). 

Tying together cross-border and technical interoperability, legal interoperability refers to the building of a framework that legally recognizes digital identities and trust services across borders – entailing that once a digital identity or trust service is accepted in one member state, it must be recognized and accepted in all other without the need for further validation. 

The list goes on, but these three points were mentioned simply to elucidate the significant changes made to eIDAS 2.0. 

eIDAS 2.0, particularly through the European Digital Identity Wallet, will significantly streamline processes in the banking and payments sector – two use cases are elaborated on below to give an idea of what this might practically entail. 

eIDAS 2.0 will simplify online transactions by empowering users to authenticate their identity and authorize payments directly within the wallet. This will hopefully not only simplify online transactions, but also make them more secure, as users are able to control which personal details are shared. 

Online identity verification when opening a new bank account 

When opening a new bank account, users will be able to verify their identity via the European Digital Identity (EUDI) Wallet. This removes the need to physically visit a bank or handle multiple documents simultaneously, as the wallet is able to store verified personal identity information and electronic attestations of attributes.

Why is Everyone Talking about eIDAS 2.0 Right Now?

Many experts are arguing that the rollout of eIDAS 2.0 is helping with the democratization of credentials, adding measures of privacy that you wouldn’t otherwise have access to. Combined with the focus on interoperability, this makes the new eIDAS 2.0 framework a strong tool in securing cross-border digital trust. Some also argue that, when it comes to the conduct of business, eIDAS 2.0 brings the focus back into Europe, and away from larger U.S. organizations that typically tend to dominate, signaling more independence. 

eIDAS 2.0 also signifies efforts being made to enhance the accessibility of digital credentials, with each EU member state mandated to provide at least one eID solution for its citizens. This development can be seen as influenced by the concept of self-sovereign identity, whereby users have full control over their personal data and credentials. Whilst eIDAS 2.0 may not fully realize this vision, it marks a clear shift towards greater user control compared to existing eID solutions, emphasizing the principle of user empowerment and sovereignty in digital identity frameworks.

eIDAS 2.0 will facilitate smoother cross-border digital business operations, allowing companies to easily verify identities and provide services across EU markets. However, businesses need reliable, scalable solutions to manage this increased interoperability effectively.

For companies in sectors such as banking, insurance, and telecom, the requirement to adopt digital wallets will create immediate pressure to ensure systems are compliant. However, this mandated change also presents a strategic opportunity to enhance customer engagement, reduce friction in identity verification processes, and offer more seamless, secure transactions.

Under eIDAS 2.0, certain companies, particularly those in highly regulated sectors like finance, telecommunications, and healthcare, will be required to implement the EUDI Wallets. This will pose both a challenge and an opportunity – businesses will need to ensure they meet compliance requirements, while also leveraging these wallets to streamline customer interactions, improve security, and offer more personalized services.

The new framework encourages the use of digital identity solutions that reduce manual identity checks and streamline KYC (Know Your Customer) processes. Businesses investing in compliant, automated digital identity systems can lower operational costs while increasing speed and accuracy in user verification.

As eIDAS 2.0 boosts trust in online transactions, companies that adopt advanced digital identity solutions will unlock new growth opportunities. By leveraging a secure digital identity ecosystem, businesses can expand their reach, attract new customers, and operate confidently in a digitally secure environment.

For businesses that integrate these new digital wallets, there’s potential to turn compliance into a value-added service. Companies that successfully integrate the EUDI Wallets can enhance customer experiences by offering secure, one-click access to services across borders, ensuring convenience while protecting user data.

eIDAS 2.0 enhances security, the complexity of integrating high-level identity verification with existing infrastructures may challenge businesses. Those that invest in adaptable, future-proof identity solutions will be better equipped to prevent fraud and ensure ongoing compliance as the digital landscape evolves.

While some businesses will be required to implement digital wallets, the challenge lies in managing this transition efficiently. Companies will need flexible, scalable solutions that not only comply with eIDAS 2.0 but also integrate smoothly with existing systems, minimizing disruption while maximizing customer satisfaction.

You x spektr: Future-Proofing Your Business

As eIDAS 2.0 unfolds, compliance professionals need to start preparing their organizations for the adoption of the new European Digital Identity Wallet and the integration of trust service providers. That’s where spektr steps in. 

spektr is committed to being at the forefront of eIDAS 2.0 compliance by fully integrating the necessary solutions for onboarding directly into our platform. We help organizations future-proof their approach by ensuring that the moment eIDAS 2.0 goes live, businesses can immediately utilize these solutions.

Our platform already supports a wide range of eID integrations, e.g. MitID and BankID, allowing businesses to decrease risk and increase onboarding conversion rates. As eIDAS 2.0 progresses, we will continue to integrate local digital identity services into onboarding flows, giving our clients immediate access to these tools as they become available. 

Interested in learning more about how spektr can help future-proof your organization in preparation for eIDAS 2.0? 

 with one of our pros. If you’re also just interested in learning more about how your business might be affected by eIDAS 2.0, our in-house legal team can 

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Discover how eIDAS 2.0 enhances digital identity and trust services across the EU, enabling secure cross-border transactions and electronic identification. 

eIDAS 2.0 Guide: The Essentials 

We’re excited to share what feels like our biggest milestone yet. Since launching in February, we’ve listened closely to what compliance teams really need, and we’ve been working behind the scenes to deliver. 

client onboarding, continuous compliance 

—solutions we’ve built after seeing firsthand how rigid processes slow things down in this fast-moving industry. With this update, we’re giving you the flexibility to design compliance processes that fit your business like a glove, making it easier for you to focus on what matters most.

One of the biggest frustrations we’ve heard from professionals in the industry is how one-size-fits-all compliance tools don’t actually fit anyone. Every business is different, and so are your compliance needs. That’s why we’ve made spektr hyper-configurable, giving you control over every step of the process. Whether it’s deciding how often you run KYC checks or adjusting AML reviews based on your risk tolerance, spektr lets you design processes that make sense for your business—to match your operations, regulations, and even your budget.

“spektr’s granularity and testing capabilities were game-changers for us. It’s crucial to show minimal false positives, and spektr’s platform excels in this,” said Adrian Vella, Head of Compliance at Fyorin.

Onboarding: Fast, Customizable, and No-Code

Onboarding new clients is often the first big hurdle in compliance, especially when it involves multiple systems and manual steps. With spektr, you can 

 that suit your business model, without needing to code a single line. Everything is embedded directly into your processes—compliance checks, document verification, and risk assessments—so you can avoid delays and the hassle of switching between tools.

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, you can trust that your onboarding processes are built with the highest security standards in mind.

Continuous Compliance: Real-Time, Event-Based Monitoring

Build processes that cover all your risk and compliance needs, from ongoing monitoring to timely client reviews. Once set up, you can track important changes in real time, so you’re always ahead of potential risks without having to scramble.

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Case Management: All in One Place, No Loose Ends

Sometimes, compliance issues don’t fit into neat, automated processes. That’s why spektr’s 

 pulls together all the tricky, non-standard cases, making sure nothing gets lost or overlooked.

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Here’s how we help you stay on top of things:

Compliance AI: Letting You Stay in Control

With AI being such a hot topic, it’s tempting to think it can handle everything—but in compliance, there are tasks too important to fully automate. That’s why we designed 

 to work the way you want it to. Rather than taking over, spektrAI supports where you need it most. From monitoring negative news to processing documents or checking sanctions, you decide how AI fits into your process. This way, you stay in control, reducing false positives and avoiding missed risks. Whether AI suggests actions or handles specific tasks, the final decision always remains in your hands.

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Your compliance process shouldn’t feel like an obstacle—it should move at your speed, and adapt as your business grows. With spektr, you’re in control of how compliance fits into your process. Whether it’s automating the repetitive tasks or fine-tuning risk assessments to fit your specific needs, spektr helps make compliance simpler and smarter, without taking over.

 and see firsthand how hyper-configurability can save you time, reduce risk, and automate your compliance process.

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With our hyper-configurable solutions for client onboarding, continuous compliance, and case management, you take charge of your compliance processes. Instead of being limited by rigid systems, you can adapt workflows to fit your specific needs.

New to spektr: Client Onboarding and Continuous Compliance, Now Hyper-Configurable

Client Onboarding and Continuous Compliance, Now Hyper-Configurable

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