Introduction
Legal Entity Identifiers (LEIs) were designed to bring clarity to financial markets. But today, LEI use in business sectors is expanding rapidly. Industries like logistics, insurance, and technology—as well as public sector institutions—are embracing LEIs to validate business partners, reduce fraud, and streamline global interactions.
This shift shows how LEIs are evolving from a regulatory requirement into a valuable asset for every sector looking to operate with greater confidence.
What Is an LEI?
An LEI is a 20-character alphanumeric code that uniquely identifies legal entities participating in financial or commercial transactions. Each LEI is linked to verifiable information about the entity’s legal status, ownership structure, and jurisdiction.
The system is maintained by the Global Legal Entity Identifier Foundation (GLEIF) and enables instant, reliable identification of organizations worldwide. You can read more about LEIs here.
Why Non-Financial Sectors Are Embracing LEIs
As global business becomes more interconnected and data-driven, the need for trust and standardization grows. LEIs are helping industries outside finance meet this challenge in practical ways.
Supply chains need transparency
Manufacturing, logistics, and retail companies depend on complex global supplier networks. LEIs help them confirm that their partners are legitimate businesses. This reduces onboarding time, automates verification, and lowers the risk of fraud.
By incorporating LEIs into procurement and vendor management systems, companies can improve data quality and simplify compliance.
Insurers need accurate legal identity
Commercial insurers are using LEIs to link policies and claims to the correct legal entities. This enhances risk assessment, improves reporting, and speeds up claims processing.
LEIs also support compliance with regulatory frameworks like Solvency II, where consistent and verifiable data is essential.
Governments need reliable vendors
Public sector organizations are adopting LEIs to verify suppliers, NGOs, and funding recipients. This increases procurement transparency and reduces errors in registration and reporting.
European initiatives and UN/CEFACT guidelines already support LEI adoption in public grant systems. For governments, it’s a low-cost way to increase trust and accountability.
Global trade needs consistency
In international trade, LEIs provide a standardized way to identify buyers and sellers across borders. This helps businesses and customs authorities reduce paperwork, automate workflows, and detect suspicious activity.
Electronic invoicing frameworks increasingly recommend the use of LEIs to ensure cross-border compatibility. To apply for or renew your LEI, start here.
Digital identity needs trust
GLEIF is developing the verifiable LEI (vLEI), a digitally signed and cryptographically secure version of the LEI. This version will be usable in:
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Online contract signing
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Remote B2B authentication
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Web3 and decentralized systems
vLEIs are especially relevant for fintechs, platforms, and SaaS companies that need seamless digital trust mechanisms.
Digital identity needs trust
GLEIF is developing the verifiable LEI (vLEI), a digitally signed and cryptographically secure version of the LEI. This version will be usable in:
-
Online contract signing
-
Remote B2B authentication
-
Web3 and decentralized systems
vLEIs are especially relevant for fintechs, platforms, and SaaS companies that need seamless digital trust mechanisms.
Real Business Impact
Have you ever had to manually confirm whether a foreign supplier exists? It’s time-consuming, risky, and frustrating.
Many of the organizations we support used to face this challenge. After integrating LEIs into their partner onboarding and KYC processes, they reported faster verifications, better data quality, and fewer errors.
As of 2025, nearly 3 million LEIs have been issued globally. Their adoption beyond finance is accelerating. See global data here.
What Comes Next
LEI use in business sectors continues to grow as digital trust becomes a core business requirement. As more industries digitize and regulators raise the bar for transparency, LEIs are emerging as a global standard.
Institutions like the Financial Stability Board (FSB), Bank for International Settlements (BIS), and the LEI Regulatory Oversight Committee are actively promoting broader use of LEIs across both financial and non-financial sectors.
Whether you’re preparing for regulation, scaling operations, or working across borders, adopting an LEI puts your business a step ahead. You can renew your LEI or apply for a new one here.
Conclusion
LEIs are no longer just for financial institutions. They’re becoming essential tools for transparency, risk management, and digital identity across many industries.
From verifying suppliers to enabling trusted digital transactions, LEIs offer organizations a simple yet powerful way to build credibility and operate with confidence.
If your business is expanding, partnering globally, or building digital trust—you’ll want an LEI on your side. Start here.
