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Trusted Digital Identity: A New Standard For Finance Industry

The pandemic has had a major impact on almost all industries by giving technology the space and push required to flourish in all aspects and the finance industry is no exception. The financial institutions, as damage control, took to digital platforms and have been working on new concepts, applications and digital services in order to not only survive but also take part in fierce competition.

The change happened too suddenly for all the businesses and individuals to understand and work accordingly in that time period. Investments in gaining knowledge about the current trends can take key stakeholders a long way which is why global finance conferences, such as the Money 2.0 Conference, intervene. It provides a platform for policymakers and thought leaders to learn, connect, and grow with time and each other.

For all the talk about new apps and digital services, let us shed some light on the processes that strengthen them:

Identity Validation

With the involvement of digital platforms, every commercial transaction requires the transfer of money which means access to the customer’s bank account, shopping carts, or even their new blockchain contracts. To succeed in this process, companies use passwords. Although passwords are considered personal and hard to intercept/break. However, in the digital age, experts have found better ways to demonstrate the ID and link it to a central point of reference, that is, validation. Therefore, cryptographic keys are stronger than just simple passwords which are harder to crack.

The financial services imperative

The rise of online transactions and everything digital has made ID and validation a major cause of concern for banks and insurers undergoing huge digital transformation projects with the onset of the pandemic. The bigger question for financial institutions is how can they protect their clients while giving them a better digital experience? To answer that, biometrics has been adequately fulfilling the purpose with the use of facial recognition via a camera phone or fingerprint access because it is unique.

The continual transformation has become the new normal for large banks and insurers. With multiple providers making products available, customers should be able to easily take advantage of a unique and strong digital identity.

Single Source

Experts suggest that creating a central repository for financial services providers (and any other enterprises) to link into, can create an identity hub that can be used across borders. Individuals can provide their evidence once and be relied upon again and over for validating identities - from opening bank accounts in multiple countries to verifying smart contracts.

Benefits

A trusted organization accumulates the information from sources such as government-issued IDs, mobile behavior, and biometric recognition along with some form of global consensus or ‘gold standard’. In other words, moving to a digital world with continuous transformation, innovation, and convenience rule, cannot be constrained with slow, in-person, and paper-based processes. It is an attempt to give people digital conveniences by setting them free from the shackles of old-school validation.

10/01/2021 - 12:34
Author Image
vinayak
Author Name
Vinayak Joshi
Author Bio

Vinayak Joshi is an integral part of the Money 2.0 Conference team who is curious about the world of finance. With a keen interest in cybersecurity, internet financial fraud detection, scam investigation, and digital forensics, his passion lies in helping people traverse the internet securely. A self-declared anti-spam and phishing expert, when Vinayak is not working, he loves to read crime fiction, write, and play basketball.