As organizations across all industries conduct more and more transactions digitally and globally, the face of identity is rapidly evolving. The need to provide customers with frictionless, secure, and trusted experiences must be balanced by a company’s need to ensure regulatory compliance, security, and profitability. The driving force behind all of this is a collective need to know and trust people.
At last month’s KNOW Identity Conference, identity experts from across industries came together to discuss ideas and policies that will shape the future of identity across the globe. We were proud to have been included among a bright and influential group of panelists and presenters. We were also extremely grateful for the opportunities to share ideas with thought leaders in the identity space and to expand our thinking in the area of identity verification.
Here is a summary of some notable themes and concepts covered in the KNOW Identity Conference panels:
Data Capture is Becoming More Targeted
Customer data has long been considered an asset companies strived to collect and maintain. And while it still is, in many ways, companies are also recognizing the great risks that come with handling customer identity information. The trend is shifting collecting the minimum amount of data needed for the specific function at hand.
Many Believe Blockchain Holds the Key
An area of intense interest among identity experts and related to the risks of owning silos of customer data, is the use of blockchain decentralized ledgers. The idea is that blockchains may better protect the ownership of identity data and facilitate identity verification in any number of applications. The decentralized nature of the data blocks take control out of the hands of individual companies and put it into a global system where identity information exists as blockchain IDs that users manage and companies or applications access as needed to verify only the aspects of identity they really need.
Are NFC-Enabled IDs the Future?
Pushing of electronic IDs (such as ePassport) for a secure and reliable verification is still way behind expectations as it is only possible on Android devices currently. But many believe that as soon as Apple opens up this interface, which it is slowly doing, there will be huge growth here.
Biometrics Can Build Digital Identity
Standalone ID verification is not enough anymore. Many believe it is possible to build a digital identity through the sole use of biometrics, which can provide easy and frictionless methods for customers to verify themselves. Consider that only a few years ago nobody expected to use a fingerprint to unlock device. Now it´s a standard. Biometrics, including facial recognition, are also headed toward becoming a new standard.
Customers Want Tailored Consent
Personalization is the name of the game in many areas of business as companies look to develop trusted and loyal relationships with their customers. The same concept is trending when it comes to privacy. Customers don’t want to “share all” of their information anymore. Instead, they want the opportunity to tailor their consent to only certain types of information that they are comfortable sharing based on the value they may receive in return or the necessity of the process they wish to complete.
Privacy by Design
Privacy by design is an approach which takes privacy and data protection compliance into account from the very start of a system or application design. The idea is to “bake in” privacy such that it is the “default mode of operation.” This concept is becoming more and more accepted and practiced across the identity space.
Trust is a Fundamental Factor Across Industries
As mentioned at the start, knowing and trusting customers is the driving force behind identity verification. Trust is critical in a digital world where consumers are transacting behind a ‘cloak of anonymity’ which is the Internet. Just look at the rise of the sharing economy where users want to know they can trust the person who is about to pick them up for a ridesharing service is indeed who they say they are. Simply put, trust is probably the most central issue to any industry operating in today’s digital world.
Developing World Identity Must Be Considered
Identity in developing worlds is not just a concern in developing nations. It’s a global concern. Consider the billions of people don’t technically have an identity at all. This critical issue will require “village” consensus of who a person is in order to validate the creation of that ID. Many of these efforts are being taken on by NGOs and the governments themselves are ill-equipped to accomplish this.
(Re-) Verification through Smart Data is Another Trend
Re-verification using smart data goes beyond checking a physical ID to also take device data (behaviors, habits, IP addresses, transaction histories) into consideration. These verifications can be invisible to customers as they remove manual steps in the verification process and replace them with predictive and historical data in an attempt to predict and prevent fraud.
Machine Learning and Artificial Intelligence Can Help Scale ID Verification
When it comes to ID verification, machine learning and artificial intelligence are still in an early stage but many experts believe it will become more and more important in future, especially if millions of customers needs to be verified. The use of machine learning and artificial intelligence can accommodate verification at scale but for now, also represent a point of attack as the human element is removed. Fully automated ID verification, today, is also not possible in certain industries because of regulatory requirements (i.e. AML in Europe). We believe the best way forward today is a combination of human ID experts and machine learning.
All in all, the 2017 K(NO)W Conference was a worthwhile and insightful experience. The future of identity is in good hands. We look forward to continuing to operate at the front lines of this exciting industry.
At Jumio, we offer a hybrid approach to identity verification that combines machine learning, technology, and ID experts. Technology that combines ID Verification, Identity Verification, and Document Verification offers a powerful solution to know and trust your customers in a digital world. Learn more about Netverify Trusted Identity as a Service and Schedule a demo today.