Why banks should focus on owning customer identity instead of creating a superapp

The pressure to become a superapp is felt across the banking industry. Banks are being told they need to do it all - payments, shopping, travel, even social features - just to keep up with fintechs and Big Tech.

But the reality is that most customers don’t actually want their bank to be a one-stop shop for everything. Instead, they want a bank they can trust to handle the things that matter most - like their money, their data, and their identity.

This article was inspired by the Tech Tribe podcast, Your Identity Is Going Digital, where Martin Zeisel, Principal Consultant at G+D Netcetera, discussed what digital identity really means and why it’s becoming the cornerstone of trust and value in Digital Banking.

In this article, we focus on why banks should prioritise owning customer identity over building superapps, the opportunities this creates, and how to turn identity into a strategic asset.

The idea of a superapp - where customers can do everything from banking to booking a taxi - sounds appealing. After all, companies like WeChat (China) and Grab (Singapore) have shown how powerful an all-in-one platform can be. But for banks, the reality of building and maintaining a superapp is more complicated.

First, there’s the issue of trust. Customers see banks as the place to manage their money, not their groceries. Research from the UK found that 60% of consumers trusted their bank to keep their personal details safe - more than law enforcement (31%), government (28%) and online shopping sites (17%). When HSBC (UK) tried to expand into lifestyle services through its new Zing app in 2024, engagement outside core banking remained low, and the service was eventually discontinued in 2025. Customers simply didn’t see the value in using their banking app for anything beyond financial services.

Second, there’s the technical and regulatory complexity. Building a superapp involves integrating third-party services, managing new compliance requirements, and dealing with the operational headaches that come with it.

Then there’s the risk of brand dilution. When a bank starts offering ride-hailing or food delivery, it blurs the lines of what the bank stands for. Customers might start questioning whether their bank is really the best place to handle their money if it’s also trying to be a jack-of-all-trades.

And let’s not forget the competition. Big Tech companies like Apple and Google already dominate the daily-life app space. Apple Pay, for instance, has seamlessly integrated payments into iPhones, making it difficult for banks to compete on convenience alone. Meanwhile, fintechs like Revolut (UK) and N26 (Germany) have shown that customers prefer specialist apps for non-banking needs. Revolut, which started as a digital bank, has expanded into travel and crypto, but its core value still lies in financial services.

So the idea of creating superapp for banking customers may sound appealing, but there are many challenges a bank has to overcome to succeed in this space. And even then, there’s no guarantee that customers will actually use it for anything beyond banking.

Banks already have something far more valuable than a superapp: they’re the trusted guardians of customer identity. They already verify identities every day - whether it’s for opening an account, processing a loan, or preventing fraud. This is a huge, untapped asset, especially as digital identity becomes more important.

Consider the ways banks manage customer identity:

• Onboarding: They cross-check government-issued IDs (like passports or driver’s licences) against official records, using OCR extraction and biometric liveness detection to confirm real-time presence and prevent fraud.
• Authentication: They authenticate users at each login or transaction, using multi-factor methods (like passwords, PINs, fingerprint scans, facial recognition or device-based tokens) to make sure customers are who they claim to be.
• Authorisation: They authorise actions by assessing permissions based on user attributes (like name, address, date of birth, account limits and risk profiles), integrating real-time checks against fraud databases and regulatory rules to approve transfers, loans, or other sensitive actions.
• Portability: They can standardize and securely share verified data, enabling attribute portability through EU eIDAS digital wallets or Open Banking APIs. This reduces repetitive KYC processes while maintaining compliance and trust across services.

As well as strengthening customer trust and loyalty, owning customer identity creates plenty of revenue-generating opportunities. Banks can monetize their identity infrastructure in several ways:

• Verification-as-a-service: Banks can offer identity verification services to third parties, such as gig economy platforms (e.g. Uber or Deliveroo) needing to verify drivers’ identities, e-commerce sites requiring age verification for restricted products, and travel companies streamlining check-ins with verified digital passports. For example, a bank could charge €0.20 per verification to a ride-hailing app, creating a scalable revenue stream.
• Embedded identity for third-party apps: Banks can integrate their identity services into other platforms, such as hotel chains using bank-verified IDs for seamless check-ins, healthcare providers accessing verified patient records, and retailers offering personalized discounts based on verified customer attributes.
• Cross-industry partnerships: Banks can collaborate with government services to verify eligibility for benefits or subsidies, healthcare providers to share verified health records with doctors, and retailers to enable instant age verification for age-restricted purchases.

To maximize adoption, banks would need to use open standards like those defined by eIDAS 2.0. This would ensure interoperability and make it easier for third parties to integrate with the bank’s identity platform.

Banks are often challenged by limited in-house expertise and tech resources, but building an identity platform doesn’t have to be a solo effort. Companies like G+D Netcetera offer credential management systems that help banks issue and verify identities at scale. These solutions can also connect to any EUDI Wallet, making it easier for banks to comply with eIDAS 2.0.

While identity offers huge opportunities and requires far less operational complexity than building a superapp, there are also several risks to consider. Banks will need to navigate these challenges carefully to make sure their focus on identity delivers value without creating new problems.

One of the biggest risks is overcomplicating the offering. Banks might be tempted to add too many features to their identity platform, turning it into another bloated system that confuses customers and dilutes its core value. A streamlined identity service - one that does a few things exceptionally well - will outperform a cluttered platform that tries to do everything.

Another critical consideration is customer privacy. Identity is deeply personal, and customers will only trust banks that handle their data with the utmost care. Banks must therefore prioritise transparency and consent so that customers know exactly what data is being shared, with whom and for what purpose. Without this, even the most impressive identity platform will struggle to gain adoption.

Despite their established technology, processes and experience, banks should be mindful of underestimating the competition. Big Tech companies like Apple and Google, as well as agile fintechs, are already making moves in the identity space. Therefore, banks can’t afford to be complacent. They need to act quickly to establish themselves as the go-to providers of digital identity, leveraging their existing trust and regulatory advantages.

Finally, there are regulatory challenges to address. While eIDAS 2.0 provides a strong foundation for digital identity in Europe, banks still need to navigate a complex landscape of compliance requirements. This includes everything from data protection laws like GDPR to industry-specific regulations around financial services. Partnering with experts who understand these nuances can help banks stay ahead of the curve and make sure their identity platform is both compliant and competitive.

Superapps might grab headlines, but they’re a distraction from a bigger opportunity for banks: owning customer identity.

Banks already have the trust, the infrastructure and the regulatory support to become the backbone of the digital economy. By focusing on identity, they can create new revenue streams like verification-as-a-service for third-party platforms. And they can deepen their customer relationships by offering seamless, secure access to services across industries - from travel to healthcare. And they can do all this without the complexity of developing, maintaining and marketing a superapp.

Ready to explore how identity can drive your bank’s success? At G+D Netcetera, we help banks turn identity into a platform through our credential management systems and mobile wallet solutions. Get in touch with our expert team today.