--- url: 'https://www.corbado.com/blog/iso-18013-7-mdl-bank-kyc-onboarding' title: 'ISO 18013-7 mDLs in Bank Onboarding and KYC (2026)' description: 'Explore the current adoption of ISO 18013-7 mobile driver’s licenses (mDLs) for secure and seamless banking KYC and onboarding worldwide.' lang: 'en' author: 'Vincent Delitz' date: '2025-07-14T17:40:24.053Z' lastModified: '2026-03-27T07:01:38.289Z' keywords: 'bank onboarding, kyc' category: 'Passkeys Strategy' --- # ISO 18013-7 mDLs in Bank Onboarding and KYC (2026) ## Key Facts - **ISO/IEC 18013-7** is the emerging global standard for mDL-based bank KYC, with the first live onboarding flows expected by late 2025 and into 2026. - Published on **October 7, 2024**, ISO/IEC 18013-7 defines the protocol for presenting mobile driver's licences securely over the internet for identity verification. - **U.S. Bank and Chime** announced mDL-based online account opening for late 2025, using Apple's 'Verify with Wallet' as the key technical enabler. - The EU's **eIDAS 2.0** mandate requires banking relying parties to accept the EUDI Wallet for customer identification and strong customer authentication by 2027. ## 1. Introduction For years, remote bank onboarding has relied on cumbersome Know Your Customer (KYC) processes that typically require users to scan a physical ID or driver's license, often combined with a liveness check or a live video call. This method is high-friction and exposed to new AI-based security [vulnerabilities](https://www.corbado.com/glossary/vulnerability). However, a major shift is occurring. Over the next few years, these legacy processes will be replaced by secure, user-centric [digital credentials](https://www.corbado.com/blog/digital-credentials-api). Central to this transformation is the mobile driver's license (mDL), which has already started to spread across different regions. The **ISO/IEC 18013-7** standard is the key enabler, providing a secure framework for presenting these digital IDs online. While our previous article on the [Digital Credentials API](https://www.corbado.com/blog/digital-credentials-api) (2025): Chrome & Safari covered the broader technology, this analysis focuses specifically on how [ISO 18013-7](https://www.corbado.com/glossary/iso-18013-7) compliant [mDLs](https://www.corbado.com/blog/mobile-drivers-license) are being adopted in [banking](https://www.corbado.com/passkeys-for-banking). We will examine the current early state in three key markets, the United States, Australia, and Europe, to understand how financial institutions are starting from early pilots to the first live production systems. ## 2. United States: Pilots and Early Adopters In the U.S., the adoption of mobile driver's licenses for remote KYC is moving from [government](https://www.corbado.com/passkeys-for-public-sector)-led pilots to concrete implementation plans by major financial institutions. A key milestone was the official publication of the **ISO/IEC 18013-7** standard on **October 7, 2024**, which defines the protocol for securely presenting an [mDL](https://www.corbado.com/blog/mobile-drivers-license) over the internet. While no bank has launched a full-scale online [mDL](https://www.corbado.com/blog/mobile-drivers-license) onboarding process as of mid-2025, the foundations are being established. An important development is Apple's "Verify with [Wallet](https://www.corbado.com/blog/digital-wallet-assurance) on the Web" feature, announced at WWDC 2025 alongside comparable progress on Google's Chrome browser. This feature will allow users to share verified identity information from state-issued [mDLs](https://www.corbado.com/blog/mobile-drivers-license) stored in Apple [Wallet](https://www.corbado.com/blog/digital-wallet-assurance) or Third-Party-[Wallets](https://www.corbado.com/blog/digital-wallet-assurance) directly with websites, representing a significant catalyst for mainstream adoption. Below is a summary of key initiatives in the U.S.: | Institution / Pilot | Initiative / Use Case | Status / Timeline | Key Technology / Standard | | :--------------------------------------------------------------------------------------------------------------------------- | :------------------------------------------------------------------- | :---------------------- | :------------------------- | | [**U.S. Bank**](https://www.macrumors.com/2025/06/10/apple-digital-id-web-browser-support-ios-26/) | Online account opening | Announced for late 2025 | Apple "Verify with Wallet" | | [**Chime**](https://www.macrumors.com/2025/06/10/apple-digital-id-web-browser-support-ios-26/) | Online account opening | Announced for late 2025 | Apple "Verify with Wallet" | | [**NIST / NCCoE Pilot**](https://blog.spruceid.com/spruceid-joins-nist-nccoe-to-accelerate-mobile-drivers-license-adoption/) | Building a reference architecture for mDL use in online banking KYC. | Ongoing | ISO 18013-7 | | [**America First CU**](https://identityweek.net/mobile-driver-licenses-accepted-by-u-s-credit-union/) | In-branch identity verification (not remote/online). | Live since 2022 | State mDL App (Utah) | Apple's announcement named a broad set of launch partners, including financial institutions **U.S. Bank** and **Chime**, and other services like Turo and [Uber](https://www.corbado.com/blog/uber-passkeys) Eats. This indicates that later in 2025, their customers are expected to be among the first to use an iPhone's [digital ID](https://www.corbado.com/blog/digital-identity-guide) instead of uploading physical documents. The initiative is also supported by state motor vehicle agencies in Arizona, Georgia, and Maryland. Beyond Apple's ecosystem, the U.S. National Cybersecurity Center of Excellence (NCCoE) continues its project to build a reference architecture to accelerate [mDL](https://www.corbado.com/blog/mobile-drivers-license) adoption for online [identity proofing](https://www.corbado.com/blog/digital-identity-guide). ## 3. Australia: A Regulated Market in Transition Australia has been a global frontrunner in the rollout of state-level **digital driver's licences (DDLs)**. The financial regulator, AUSTRAC, gave its approval back in 2019 for banks to accept these digital IDs for KYC purposes. However, the market is in a phase of transition, moving from manual online checks to exploring more integrated [digital identity](https://www.corbado.com/blog/digital-identity-guide) platforms. Many banks still rely on the classic, high-friction method for online KYC: requiring customers to take and upload photos of their physical driver's license, often paired with a "liveness" check where the user takes a selfie or short video. Some teams still receive IDs or bank statements as PDFs and parse them programmatically ([code-first document parsing](https://apryse.com/blog/pdf-data-extraction-with-python) outlines a practical workflow). Stepping beyond this, some institutions have implemented intermediate solutions. For example, **ANZ Bank's eVerify** system digitizes part of the process, allowing customers to verify themselves by manually entering their Driver Licence Card Number (DLCN) online, which is then checked against a [government](https://www.corbado.com/passkeys-for-public-sector) database. While more streamlined than photo uploads, this does not yet constitute a fully automated mDL verification where data is exchanged securely and instantly with a single tap. | Institution / Pilot | Initiative / Use Case | Status / Timeline | Key Technology / Standard | | :---------------------------------------------------------------------------------- | :--------------------------------------------- | :------------------ | :------------------------ | | [**AUSTRAC**](https://www.austrac.gov.au/digital-driver-licences-now-acceptable-id) | Regulatory approval for DDLs in KYC processes. | Approved since 2019 | State-issued DDLs | While the regulatory framework is in place, a seamless, API-driven data exchange based on [ISO 18013-7](https://www.corbado.com/glossary/iso-18013-7) is not yet standard practice across the major banks. The industry is positioned for this shift as national [digital ID](https://www.corbado.com/blog/digital-identity-guide) frameworks mature and more states evolve their [DDLs](https://www.corbado.com/blog/mobile-drivers-license) to be fully compliant with a future online standard. ## 4. Europe: The Regulatory Push for a Unified Digital Identity In contrast to the market-driven adoption in the US and Australia, the European Union is pursuing a top-down "push" strategy. Through a regulation known as [eIDAS](https://www.corbado.com/glossary/eidas) 2.0, the EU is mandating the creation of a single, interoperable [digital identity](https://www.corbado.com/blog/digital-identity-guide) market. The cornerstone of this initiative is the **[EU Digital Identity (EUDI) Wallet](https://www.digital-credentials.io/eudi-wallet)**, a mobile app that every member state must offer to its citizens by 2026/2027. This [wallet](https://www.corbado.com/blog/digital-wallet-assurance) is designed to hold a wide array of verified [digital credentials](https://www.corbado.com/blog/digital-credentials-api), such as educational diplomas, [travel](https://www.corbado.com/passkeys-for-travel) passes, and professional certifications. For [banking](https://www.corbado.com/passkeys-for-banking) and regulated industries, two credentials within the wallet are interesting: the **Person Identification Data (PID)**, which serves as the official national [digital ID](https://www.corbado.com/blog/digital-identity-guide), and the **Mobile Driving Licence (mDL)**. While they serve different functions, the technical architecture for both is based on the **ISO series of standards**, making the mDL format discussed in this article a core component of the EU's identity framework. The wallet will allow individuals to share these [government](https://www.corbado.com/passkeys-for-public-sector)-verified attributes with banks and other private companies in a secure, user-controlled way. This regulatory mandate is being actively defined through several **Large-Scale Pilots (LSPs)** launched in 2023 to test real-world [banking](https://www.corbado.com/passkeys-for-banking) and [payment](https://www.corbado.com/passkeys-for-payment) use cases. These pilots involve hundreds of public and private entities, including major financial institutions. While pilot participation is voluntary, the regulation requires certain relying parties, including many in regulated industries like banking, to accept the EUDI Wallet for customer identification and [strong customer authentication](https://www.corbado.com/faq/sca-psd2-importance) (SCA) by 2027. Below is a summary of key initiatives driving mDL and digital ID adoption in European banking: | Consortium / Pilot | Key Banking Partners & Participants | Use Case(s) | Key Technology / Standard | | :------------------------------------------------------------------ | :-------------------------------------------------------------------------------------------------------------- | :---------------------------------------------------------- | :------------------------------------------------ | | [**NOBID Consortium**](https://www.nobidconsortium.com/) | DSGV (German Savings Banks), DNB (Norway), Intesa Sanpaolo (Italy), Landsbankinn (Iceland), Banca Sella (Italy) | Cross-border payment initiation and authorization. | EUDI Wallet (using mdoc/ISO 18013-7 for identity) | | [**POTENTIAL Consortium**](https://www.digital-identity-wallet.eu/) | Major banks (e.g., from France), government agencies, and tech providers. | Bank account opening, Mobile Driving Licence, e-signatures. | EUDI Wallet (using mdoc/ISO 18013-7 for identity) | This regulatory mandate will effectively commoditize high-assurance [identity verification](https://www.corbado.com/blog/digital-identity-guide). When a core business process like KYC becomes a universal, government-backed utility, the competitive focus will shift from _how_ a bank verifies an identity to _what_ it does with that [trusted identity](https://www.corbado.com/blog/digital-identity-guide). Banks that can leverage verified wallet attributes to deliver superior services—like instant loan approvals or seamless cross-border [payments](https://www.corbado.com/passkeys-for-payment)—will gain the advantage. The EUDI Wallet is not just a compliance exercise; it is a market shift forcing every financial institution in Europe to prepare for the next generation of digital banking. ## 5. Conclusion The era of high-friction KYC, forcing customers to scan physical documents and perform liveness checks, is approaching its end. As this article has shown, the transition to secure, [one-tap](https://docs.corbado.com/corbado-connect/features/one-tap-login) digital ID verification is well underway, but the path to adoption differs significantly across the globe. In the United States, the push is market-led, with tech giants like Apple partnering with forward-thinking banks such as U.S. Bank and Chime. In Australia, a progressive regulatory environment has prepared the ground, but adoption is more gradual as the market transitions from manual checks to truly integrated digital ID networks. Meanwhile, the European Union is pursuing a powerful top-down mandate, compelling its entire banking sector to adopt the EUDI Wallet and its underlying ISO-compliant credentials by law. Despite these different strategies, a common technical foundation is emerging: the **ISO/IEC 18013-7 standard**. Whether driven by market demand or regulatory mandate, it is becoming the global blueprint for how we securely share identity online. The trajectory is clear. By late 2025 and into 2026, the first wave of ISO-compliant onboarding flows will likely go live, transforming the user experience and enhancing security through cryptographic data verification. Ultimately, the adoption of [ISO 18013-7](https://www.corbado.com/glossary/iso-18013-7) represents a global shift towards a more secure, private, and efficient digital economy, where verified identity is no longer a barrier but a seamless enabler of trust. ## Frequently Asked Questions ### How does ISO 18013-7 change the bank KYC process compared to traditional document scanning? ISO/IEC 18013-7 replaces high-friction methods like photo uploads of physical IDs and liveness checks with cryptographic, one-tap digital identity verification. Users share government-verified attributes directly from an mDL, eliminating manual document review and reducing exposure to AI-based fraud vulnerabilities that affect legacy processes. ### Which US banks are launching mDL-based online account opening and when? U.S. Bank and Chime are named launch partners for Apple's 'Verify with Wallet on the Web' feature, announced at WWDC 2025 and expected in late 2025. The feature enables customers to share state-issued mDL data from Apple Wallet directly with websites, with initial state support from Arizona, Georgia and Maryland. ### What is the EUDI Wallet and when must European banks be ready to accept it? The EUDI Wallet is a government-issued mobile app mandated by eIDAS 2.0 that every EU member state must offer citizens by 2026/2027. Regulated relying parties including banks must accept the wallet for customer identification and strong customer authentication by 2027, using ISO-compliant credentials such as Person Identification Data and mDL. ### How far along is Australia in replacing physical document KYC with mDL verification? Australia's AUSTRAC approved digital driver's licences for KYC purposes in 2019, establishing an early regulatory foundation. However, most major banks still rely on photo uploads or intermediate solutions like ANZ Bank's eVerify manual entry system, and seamless API-driven ISO 18013-7 data exchange is not yet standard practice across the industry.