Datai, a Luxembourg-based consultancy firm, has selected Hopae, the digital identity infrastructure company, to modernize KYC processes for its financial institution clients in Europe and make them fully compliant with eIDAS 2.0.

Europe’s KYC challenge in the age of digital identity

As Europe undergoes a fundamental shift toward digital identity, driven by the upcoming European Digital Identity (EUDI) Wallet, AML-regulated companies and Very Large Online Platforms must adapt their identity verification flows to remain compliant and competitive.

For Luxembourgish financial institutions the challenge is real. Many of them struggle to onboard non-Luxembourg customers efficiently due to dependence on national electronic ID (eID) systems.

This limitation reflects a broader structural challenge affecting KYC processes across Europe.

Traditional KYC in AML-regulated sectors, such as finance or telcos, remain slow and document-heavy, falling short of user expectations for fast and streamlined onboarding.

Opening a bank account or applying for a loan often requires multiple verification steps and long processing times, leading to 50–60% drop-off rates, while exposing institutions to rising fraud risks driven by AI, deepfakes, and synthetic identities, estimated to cost $58 billion annually by 2030 (Juniper Research).
At the same time, eIDAS 2.0 will make acceptance of the EUDI Wallet mandatory for these companies, adding further pressure on financial institutions to modernize their onboarding flows.

A concrete response for financial institutions preparing for eIDAS 2.0

To assist its customers in addressing these challenges, Datai turned to Hopae to provide digital identity verification services.

With Hopae, Datai will enable its financial institution clients, such as banks and fund administration service companies, to transform KYC journeys from complex, multi-step processes into instant and more secure ID verification experiences, using high-assurance government-backed digital identities.
Acting as both an intermediary to the EUDI Wallet and a global hub connecting existing eIDs worldwide, Hopae allows Datai’s customers to access eIDs and wallets through a single technical integration (API) and a single trusted partner, delivering up to 10x faster onboarding, higher conversion rates, and strong protection against fraud, while remaining fully aligned with eIDAS 2.0 requirements.

“Our customers are under growing pressure to reduce onboarding friction, fight increasingly sophisticated fraud while also catering to an international client base. The prevalent market solutions for both eID and KYC in Luxembourg fail to fulfill all requirements while also preventing them from moving onto more advanced solutions. By offering critical infrastructure through a single API, Hopae addresses customer needs without requiring multiple major transformation projects, while also preparing them for mandatory EUDI Wallet acceptance under eIDAS 2.0. By connecting eIDs and wallets around the world through a single API, Hopae enables our clients to move onto faster, more secure, and regulation-ready KYC journeys.” — Christian Frantzen, CEO of Datai