Intertek

Aaron Keshavarz, Director Security, Intertek

Though gained momentum with the advent of the pandemic, companies of all sizes, be they small, medium, or large, are evolving into a digital-driven space. This typically accelerates spontaneous yet inadequate structures in digital identity management and digital onboarding. However, it also introduces several unresolved issues, which are crucially addressed through identity verification processes.

Even though nearly 90 per cent of financial and insurance companies have adapted to digital business operations and customer onboarding, organisations face significant challenges in processing identity verification to onboard individuals. That is, customers often encounter complexities in creating new online accounts, due to which nearly 60 per cent of consumers abandon the account opening procedure due to increased time consumption. Moreover, digital identity proofing is likely to transform into a more information-driven process, as verifying identities digitally and remotely has emerged as a top priority for organisations with a proven customer experience.

Problems arising from simpler sources like complex onboarding procedures to more serious issues like synthetic identity fraud and compliance challenges are critically reshaping the new mode of online transactions and businesses. Traditional patterns of identification relied on physical identification to prove identity, whether for ID cards, health cards, passports, or driving licenses. Wherein, a digitised transformation in this arena has instigated the need to verify customers’ identities remotely, contributing to increased complications in the process. That is, an online-driven world scarcely ensures the genuine nature of the individual or business dealt with, paving space for various uncertainties.

A digital identity facilitates effective gap-filling by collecting personal information from online sources and connecting it to determined recognition. Alongside this, its reusable nature as an electronic proof of identity means that it is issued by a trusted authority with a presumed level of assurance and cryptographic-enabled security. Therefore, these enhanced features aid individuals in maintaining privacy and an achieved data protection, unlike the traditional pattern of identification.

The particulars of digital identity, when applied to identity verification, enable maximum accuracy, especially in the enrollment or account opening stage, leaving little or no room for errors. Therefore, nearly 84 per cent of consumers opt for accurate identity verification via online mode to open a financial service account, while 60 per cent of the population rely on the same pattern of recognition for a health account. Digital identity has also carved its place in opening gaming or gambling accounts, as users of the sector seek acute verification to sign and log in to the process.