According to JPMorgan (in the report Payments are Eating the World, 2021) the average internet user has 150 passwords, and 80 per cent of Americans are worried about how companies use their data. Twenty-five per cent of financial services product applications are abandoned during onboarding.
Proving who you are, and your age or qualifications, usually involves submitting paper documents for scrutiny and verification and takes time, with most effort being placed on on-boarding new customers and completing the regulatory ‘Know Your Customer’ requirements. Everyone who must comply complains about it, and it’s no wonder many abandon the process.
Once established, digital identities help people quickly prove who they are time after time without having to submit username and passwords, not only to financial services, but to government services, health records or claiming a loyalty reward at a store.
With this concept comes full ownership and control over one’s personal, and private data.
Who will operate Digital Identity?
Because digital identity has many relevant stakeholders such as banks, technology firms, healthcare companies, retailers and governments, there is a need to establish data, process and technology standards that make digital identity ubiquitous and universally trusted.
Banks are well positioned because of their trusted role in dealing with consumers’ personal assets and managing their money and payments.