With services like ConnectID® leading the charge, digital identification as we know it is changing. It’s backed by CommBank and offers attractive solutions to businesses and consumers.
In a time when technology is evolving at breakneck speeds and scams are spreading like an insidious fog, the need for innovation around digital identity and security has never been greater. Digital finance advisor and principal at 15Mb Ltd, David Birch, shares his thoughts on current trends, challenges and the opportunities on the horizon.
What are the key global trends driving investment in digital identity today?
David Birch: I’d say there are three major trends in the space right now. The first is that governments want more productivity, more efficiency and more economic growth—and digital identity is seen as a platform for enabling all sorts of new opportunities and businesses.
The second is that fraud is absolutely out of control. Digital identity is a key building block in the defences against it. And the third thing is that there are opportunities for businesses around identity.
What is an example of opportunities for businesses around identity?
David Birch: A simple example is that the bank knows who I am and others trust that the bank’s knowledge of me is reliable. If you force people to share too much information, they might be hesitant to transact online. But if the bank knows who I am and can confirm, that gives businesses a different level of confidence in a transaction. I should not have to give my name, address and inside leg measurement every time I want something.
“Fraud is absolutely out of control and digital identity is a key building block in the defences against it.”
What do businesses stand to gain by adopting digital identity solutions like ConnectID?
David Birch: If I’m a business and I want you as a customer, there may be some things I need to know about you. I might need to know that you’re over 18 or your address. But there are a lot of other things that I don’t want to know, because I don’t want the responsibility of having to store and protect those things.
Businesses can end up in a situation where personal data becomes a sort of toxic waste—it costs them a lot of money to look after it and when something goes wrong, the fallout is extensive. With solutions like ConnectID, businesses can collect only the necessary customer data, minimising their exposure to cyber risks.
What is the advantage of letting banks do the heavy lifting here?
David Birch: My bank knows I am who I say I am. To compete with that, a business would have to gather an enormous amount of data. Also, consumers have established relationships with banks and place trust in them because of their strict privacy standards.
In the next five years, will there be significant changes to how consumers use digital identities online?
David Birch: I think we’ll see changes in authentication so that more things are managed with secure biometrics on our phone and fewer passwords and other prompts are needed.
What role do solutions like ConnectID play here?
David Birch: I’d like to see solutions like ConnectID used much more widely because, in a way, it’s a very simple solution to a wide range of problems. And we have to solve these problems for consumers who don’t understand how any of this technology works.
It has to become part of the infrastructure. Just a couple of days ago, I wanted to book theatre tickets and in order to do that I had to create an account.
That means I have to fill out all these details. And it’s all information the bank knows and has already verified. The idea of just having a button that says, “Can you tell these guys my details and let me go about my day?” is pretty attractive.