E-ID: What would change for our customers?

Concerns about data security were too great when voters rejected the Federal Act on Electronic Identification Services in March 2021. The very clear decision, with 64.4 percent voting against, showed that many citizens did not approve of private companies issuing electronic ID cards and managing the corresponding data.

Why is there another vote?

The current bill stipulates that the new e-ID will be issued exclusively by the public sector. Responsibility for the technical infrastructure also lies entirely with the federal government. The new Federal Act on Electronic Identity enables the creation of an official, state-issued and free means of identification.

The people now have the final say because the splinter party «Digital Integrity,» founded in spring 2025, has launched a referendum against the bill. It heads the committee, supported by the EDU, the Pirate Party, the Young SVP, and movements such as «Friends of the Constitution» and «Mass-Voll».

When will the e-ID be introduced?

If the law is passed, the e-ID would be introduced in mid-2026 at the earliest. It would be issued free of charge and its use would be voluntary. Authorities and companies would continue to accept analog ID cards.

What does the e-ID show?

It contains the surname, first name, date of birth, gender, place of origin, place of birth, nationality, a portrait photo and – unlike the existing ID – the AHV number. It also includes the e-ID number, the date of issue, the expiry date and details of the issuance process.

How do you get an e-ID?

First, download the Swiyu app to your smartphone. Then apply for your e-ID from the Federal Office of Police (Fedpol). To do this, scan your physical ID card and confirm your identity online by uploading a video of yourself (live selfie).

The app is a digital wallet in which, for example, your electronic driver's license and, in the future, your health insurance card, diplomas, certificates, or concert tickets can be stored.

Where is my data stored?

This data, which is collected once at the beginning, is to be stored by the Federal Office of Police for up to 15 years along with the corresponding passport photo – an unnecessarily long time, as critics complain.

The data generated when using the app is stored decentrally, i.e., directly on the user's smartphone. Anyone who loses their device can have their e-ID revoked online – similar to blocking a credit card.

No personal information such as behavioral profiles is stored centrally. In addition, users can report companies that request too much information. These could be online shops, for example, which would then end up on a federal «list of abusers».

What about data protection?

The law stipulates that authorities and companies can only view the data they need. If, for example, a person buys alcohol, the point of sale is only informed that the person is of legal age; no specific date of birth is transmitted.

In addition, proponents emphasize that the e-ID will be protected by state-of-the-art encryption technology and critically monitored by independent IT experts.

What do the critics say?

The referendum committee, on the other hand, speaks of a lack of «security guarantees» and a «through pass to Big Tech», whose companies are set to benefit from easier access to data.

Of course, there are always risks such as hacking and the unlawful disclosure or use of data. Even the proponents do not promise 100 percent security.

The opponents fear that the e-ID infrastructure could one day be used to implement social credit systems like those in China.

What would change with the e-ID?

To identify their customers, financial institutions are forced to store copies of their ID cards, even though they do not need all of this information to open an account. With the e-ID, the disclosure of personal data could be limited to the minimum necessary, which would actually improve data protection.

E-ID is intended to break down barriers. For example, it would enable visually impaired people to open an account independently. In addition, e-ID would make it possible to sign initiatives and referendums with a smartphone, a process known as e-collecting.

Another application: anyone who withdraws pension funds (vested benefits, Pillar 3a) to purchase residential property or start self-employment needs the consent of their spouse, i.e., their signature. Pension funds often even require a notarized signature or a qualified e-signature for this. With the e-ID, obtaining the spouse's consent would be much easier. There would be no need to go to a notary and incur the associated costs.

In general, administrative processes such as ordering a criminal record extract and concluding contracts could be handled digitally – without unnecessary paperwork and without being tied to office opening hours. This would save time and reduce bureaucracy.

Incidentally, electronic ID cards are now standard in almost all European countries. However, the systems are not yet compatible with Switzerland's future e-ID. Anyone traveling should still carry their physical ID cards with them – regardless of the decision on September 28.

Conclusion

If implemented correctly by the federal government, the e-ID would also allow True Wealth to make our investment solution even simpler and more accessible. This would be achieved without compromising security.

Many people rarely carry their Passport or ID with them, but always have their smartphone with them. After the one-time onboarding process, you can use your e-ID as often as you like for a wide variety of applications.

But even if e-ID is rejected, there are still many ways for financial app providers to reconcile simplicity and security.