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There is still a need to paint the full picture. How identity is built with a long range of verifiable credentials. Often - but not in all cases - starting with an identification credential.
Identification is the act of proving who you or your company/employer are — typically at a specific point in time.
It’s transactional. Examples:
Showing your passport at the airport. Or identity card and drivers license.
Logging in with BankID in your e- or mobile bank and other public sector or private services (all in the Nordics) that need strong identification
Presenting your digital ID credential - soon state-issued ones all over EU
It answers the question:
“Who is this entity?”
Identity is the sum of what defines you — the attributes, roles, relationships, rights, and history that make up who you are and what you can do.
It’s persistent, contextual, and multi-dimensional. Examples:
“Bo Harald” as a person with a Finnish national ID, a company founder, a bank account owner, a taxpayer with verifiable income, a citizen of the EU, having verifiable degrees, drivers and other licenses, powers of attorneys, ownerships, board memberships and a participant in the digital trust ecosystem - to mention a few credentials that I need and decide to share in business and life events..
A company as a legal person: registered, licensed, and represented by authorised individuals. A longe range of credentials typically issued by public sectors. - building the organisation identity. Also soon presented by wallet carrying organisational AI-agents.
It answers broader questions:
“Who are you — in this context (business or life event), for this purpose, with what authority, and with what verified attributes?”
Identification = authentication + validation of a single credential (e.g., logging in).
Identity = the verified data graph describing the entity across contexts — roles, credentials, and rights managed through a wallet.
This is why EUDI wallets, EUBWs, and their AI-agent credentials aren’t “just digital IDs.” They’re identity systems — binding identification to verified data, rights, and accountability.
In one line:
Identification is a moment. Identity is a continuum of verified, contextual meaning.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Dr Ritesh Jain Advisor at WorldBank
10 November
Sam Boboev Founder at Fintech Wrap Up
09 November
Teo Blidarus CEO and Co-Founder at FintechOS
06 November
Milko Filipov Senior Manager at valantic
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