2022 Predictions for Identity Verification Developments
In the wake of the COVID-19 pandemic, digital channels have become an integral part of daily financial activities. From online banking to purchasing goods and communicating with loved ones, the shift towards digital has been significant and swift.
However, this transition has presented challenges for businesses, particularly in managing digital identity lifecycles and combating increased instances of identity fraud. These issues were discussed in depth at the recent Mitek Red Point event in Spain, where experts shared insights on the future of the global digital identity market and the role of biometrics in the customer life cycle.
The event highlighted the following 13 identity verification trends for 2022:
- Digital ID is now an essential part of our lives, with technology plays a crucial role in reliable self-identification.
- The definition of digital identity has broadened, encompassing not just numbers but also a complex set of attributes such as network activity and biometric characteristics.
- Companies are rethinking their approach to digital identity management, recognizing its importance and applying it strategically across all departments.
- There remains a gap between technology advancements and legislation, with regulations lagging behind in areas like user data protection and digital payment processing.
- Users demand transparency and security when it comes to their personal data, wanting to understand how it will be used and protected.
- Investments in technologies supporting decentralized information, like blockchain, are expected to grow significantly in the coming years.
- Trust in digital identity verification remains a widespread issue, from individuals and businesses to governments and public administrations.
- People are more willing to accept some friction in the user experience if they understand the reasoning behind it. Balancing security with user experience is essential.
- Continued education about online identity verification best practices is necessary to protect users from fraudsters. User behavior varies across age groups.
- New technologies, such as blockchain, will be adopted provided they are stable and trustworthy, with governments and companies playing a crucial role in regulation and transparency.
- Technological advancements, particularly in machine learning and artificial intelligence, can enhance digital security but also create opportunities for increasingly sophisticated fraud.
- Username and password verification is an insecure method for identifying users, with more advanced technologies like two-factor authentication and biometrics necessary for reliable identification.
- Biometric technologies like facial recognition are key to the adoption of digital identity verification solutions, with multimodal biometrics emerging as the most promising option.
By staying abreast of these trends, businesses can adapt and stay ahead in the rapidly evolving digital identity landscape. For more detailed insights from the experts, the full video recording of the Mitek Red Point event in Spain is available in Spanish.
Businesses are rethinking their approach to digital identity management, recognizing its importance and applying it strategically across all departments, given the increased role of digital identity verification in finance. The definition of digital identity has broadened, encompassing not just numbers but also a complex set of attributes such as network activity and biometric characteristics, as technology plays a crucial role in reliable self-identification.
