In an increasingly digital, experience-driven banking landscape, one of the biggest challenges facing financial institutions remains how to be certain of a customer’s identity.
As face-to-face identification declines, transactions grow in volume and complexity, and customers expect even more seamless, real-time services. Meanwhile, regulatory requirements become increasingly demanding and the risk of data breach or identity fraud continues to rise.
Many valuable solutions have emerged across the digital identity landscape, but ultimately our digital economy continues to rely on physical proof of identity, slowing innovation in FinTech. Without an ecosystem to link distinct, identity management systems together, consumers have to keep track of multiple credentials to identify themselves with different service providers.
Identity remains the missing piece of the FinTech puzzle.
Banks and governments need to develop a framework around digital identity. Which international standards and principles will foster trust, compatibility and interoperability, as we determine the path forward for ID applications in financial services?
FIs must be able to establish the identity of their customers - accurately, securely and seamlessly, while meeting evolving regulation. With a growing demand for remote services, will new solutions deliver on their promise to replace physical identity checks?
Are banks uniquely placed to close the gap on identity? They perform KYC and AML functions in daily operations, have a regulated use of customer data and higher than average consumer trust. What role do FIs play in building a global standard for digital identity?
Identity systems are increasingly being attacked by fraudsters. Do new approaches promise improved detection and prevention of financial crime? Which solutions offer the strongest alternative to password-based systems – granting confidence in the security of identity data.
PSD2 not only ushered in Strong Customer Authentication, but the promise of Open Banking through APIs. By connecting identity data from multiple sources, Open Banking could deliver more reliable verification and improve customer experience. But how close is this goal to being realised?
Digital ID should enhance privacy and consent, granting users control over how their personal credentials are shared. Will financial services embrace a decentralised ID model? What about the role that blockchain will have to play in identity?