The last decade brought about a lot of discussion around digital identity. Dozens of security companies created new solutions to help banks authenticate their user’s identity and verify their personal information. Throughout the years, those authentication methods have evolved from comparing a simple selfie with a picture of a driver’s license, to tracking how a user navigates a web page, to assessing their online footprint.
Lately, however, the topic of conversation has shifted from authenticating digital identities to creating a digital identity infrastructure. But what exactly is a digital identity infrastructure and why is it important in fintech? Julie Muhn, Senior Research Analyst at Finovate explores.
What is digital identity infrastructure?
Digital identity infrastructure is the set of processes a company has in place to verify users’ digital identities and manage their access. This infrastructure is especially important for banks and fintechs who host their information in the cloud, are frequently increasing the amount and types of information gathered, and are often times moving fast.
Why is digital identity infrastructure important in fintech?
This is where identity infrastructure comes into play– it helps companies scale faster and more simply. Creating a methodology around identity verification helps organizations leave behind a siloed approach in favor of a more holistic methodology that is consistent with the framework of the rest of the company.
What does the industry have to say?
David Birch, a well-known thought leader in the fintech industry, talked to us about digital identity last year at FinovateEurope. He laid out a handful of ideas on the subject, including his thoughts on creating identities for non-human objects such as robots. Some of the topics Birch discussed include:
- The need to develop a framework around digital identity, including its definition
- How banks should be responsible for developing the infrastructure around identity
- There will be a future where robots will need passports
Birch takes the stage at FinovateEurope next month to discuss how digital identities will be a game changer in the war against financial crime. He will also speak on a panel discussing which new technologies will transform financial crime and what an enterprise-wide financial crime risk assessment should look like.