Digital Identity and The Power to Predict
Posted January 10, 2018
As a shout-out to those Shakespeare fans out there, the line “What’s past is prologue” from The Tempest is proving incredibly useful when I talk to people about digital identity.
For many, this famous phrase has come to mean that history provides context for the present. But it also means the past sets the stage for what is yet to be.
It’s an important distinction that in many ways reflects the progression of digital identity—both how it’s applied today, and where it’s going next.
The Story ‘Til Now
Largely unheard of just a few short years ago, digital identity is suddenly everywhere. Forbes, TechCrunch, the Daily Mail and other major publications are heralding the digital identity revolution.
The Australian government is hashing out a digital identity framework that describes how citizens’ digital identities must be managed online. In Canada, a group of banks is developing a digital identity network designed around a mobile app that consumers can use to confirm details of their identity—age, credit score, and so on—when accessing banking services.
So far, these and other conversations have tended to focus on the now—how to move from static or offline forms of identification to digital-first approaches that help prevent fraud.
Real-time authentication has been central to these efforts, helping businesses understand and verify identity online. But today, many businesses are moving beyond customer authentication and fraud prevention technologies designed to provide a snapshot of now. Instead, they’re embracing the next-generation of digital identity and its cognitive capabilities for assessing ever-changing patterns that offer the Power to Predict.
Digital identity gives businesses the ability to predict whether the person creating a new account or logging in to do business is actually who they claim to be—even if it’s their first time using the site or app.
This predictive insight can remove the need for the kind of challenge questions and out-of-band authentication expected to contribute to an estimated $1.6 trillion in lost revenue in 2018, as customers switch brands due to poor digital customer experiences. When these extra steps can be removed for trusted customers, businesses report faster conversions and a better customer experience.
Indeed, once trusted identities have been established, businesses have the confidence to expand their online offerings and look to new geographies to increase market share.
We are already seeing this in several industries, including online lending where nimble newcomers are offering rapid loan approvals and rapidly luring customers away from incumbents.
And, the rapid adoption of mobile commerce is pushing organizations to provide greater innovation and exciting new services to meet the demand of today’s on-the-move consumer.
Departments that were previously operating in siloes are now working together to extend and refine product offerings based on a more accurate read on risks. Fraud teams are becoming more efficient at rooting out fraudsters before they have a chance to act. And businesses of all kinds say they can now focus on embracing customers, engaging the extended workforce with confidence, and growing revenue predictably and safely through digital channels.
Live and in Person
That’s the Power to Predict in action. And it’s the theme that will take center stage at Digital Identity Summit 2018.
The event series assembles the who’s-who of distinguished leaders in the digital realm to discuss all aspects of digital identity and share insights that can benefit organizations of all sizes doing business in the digital economy.
We predict that these will be informative and educational events that can benefit all digital professionals. We look forward to seeing you there.