The last decade has witnessed a dynamic development of remotely-provided services and relocation of transactions to the digital world. The traditional model based on direct suppliers and personal contact with the clients, as well as paper documents is being replaced with electronic and real-time online services. With the advent of regulations such as GDPR, organizations are forced to recognize that personal data is a valuable commodity. It should not only be protected, but individuals have to be sure that their rights to their digital identities are clearly defined.

Digital identity

Digital identity solutions will allow a remote use of services that until required visiting a customer service point in person. An average Internet user is registered in several online services, so they have to come up with and remember various different logins and passwords. Thanks to their digital identity, they may no longer have to do all this. All they need is their personal data and information about the device itself and they will be able to automatically log into banking or government service accounts. Experts agree that digital identity is an opportunity to remove inefficient and time-consuming manual processes. It also significantly reduces the risk of fraud. Online digital identity is to a large extent possible thanks to banks. According to Statista’s 2017 report, 84% of British consumers believed that online bank authentication methods are secure, while YouGov’s study suggested that 55% trust their banks.



Better security

Digital identities are not only convenient, they also significantly improve security. LexisNexis Risk Solutions analyzed 17 billion transactions for their 2018 cyber-crime report and detected 3 billion bot attacks. There were 244 million human-initiated attacks, including 103 million mobile attacks. Thanks to digital identity, it is easy to know where a device comes from, where it is registered or how many attributes (e.g. several dozen e-mail addresses) are attached to it.

Online ID verification services

Such a verification method usually requires users to provide a picture of themselves holding an ID, so that it can be ensured that they are the same people as on the document. Online verification is highly secure, but some users find uploading an image of their face and ID to be inconvenient or disturbing.

Many options to choose from

Today’s market offers plenty of ID identification services. Some of these, such as Refinitive, DIO, AU10TIX and Significat, offer complex solutions which include facial recognition, liveness detection AMLD4 compliance, better security and innovative customer experience.

When there is a need, there is also a tool

Digital identity is useful not only in banking. Healthcare and insurance industries also need verification solutions that assess transaction risk. Government agencies require modern tools to significantly reduce the scale of fraud. However, implementing digital identity solutions on a larger scale requires proper infrastructure.

To sum up: digital identity is a very promising tool that will greatly enhance security and make the world of online transactions even more convenient. While customers may not be fully convinced yet, this is the future of the digital world and e-commerce.

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