How advances in ID proofing and decentralization are changing the game
By Nir Stern, VP product management at AU10TIX
Businesses are moving a growing number and variety of transactions online, and this digital transformation has increased the importance of user experience (UX) in driving customer acquisition and retention. As a result, many companies are working with technology vendors to design and implement processes, systems, and strategies that contribute to a positive and seamless user experience.
However, one critical aspect is still often overlooked: the UX of digital identity proofing, which involves verifying an individual’s identity before granting access to services or sensitive information.
The UX problem
Organizations operating in complex and geographically diverse environments must be able to manage risks and comply with regulations, but traditional methods of verifying ID can be cumbersome. They often involve time-consuming manual processes, such as physically checking identification documents. This can cause delays in onboarding or accessing services, ultimately leading to high drop-off rates.
To address these challenges, businesses are increasingly turning to fully automated vendors that provide streamlined and efficient solutions for identity verification. By leveraging advanced technologies like artificial intelligence and machine learning, these vendors enable organizations to offer a streamlined and accelerated customer experience while ensuring compliance with regulations.
Moreover, full automation enables scalable solutions that can adapt to the needs of organizations operating in diverse geographical locations, handle high volumes of verification requests efficiently, and ensure a seamless and consistent user experience even during peak periods.
Benefits of decentralized IDs
As organizations increasingly recognize the importance of ensuring the safety of digital identities, decentralized IDs are emerging as a promising solution. This approach enables individuals and organizations to have unique and persistent identities that are not controlled by any central authority.
Decentralized IDs offer efficient verification of users’ identities with digital credentials that are easily shared across different platforms and applications. This innovative approach allows businesses to streamline the identity proofing process, manage risk, and enhance regulatory compliance. It also offers tamper-proof, scalable and enhanced data protection for users. This smooth user experience makes identity verification efficient, secure, and user-friendly.
The potential applications of decentralized IDs span industries such as healthcare, banking and e-commerce. In healthcare, patients can store their medical records in a decentralized ID, allowing them to be easily shared with different providers. In banking, decentralized IDs streamline KYC, allowing customers to maintain control over their personal information and share it with financial institutions as needed.
For online payments and e-commerce, decentralized IDs can facilitate secure and private online transactions. Users can associate their payment information, such as credit card details or cryptocurrency wallets, with their digital identity and selectively share it with merchants or service providers when making purchases. This reduces the risk of credit card fraud, minimizes the amount of personal data exposed to third parties, and simplifies the checkout process, resulting in a smoother and more secure UX.
Overcoming implementation barriers
Implementing decentralized IDs can be challenging, particularly in industries where established identity verification processes are already in place. Furthermore, in highly regulated industries such as finance and healthcare, businesses must comply with stringent oversight to ensure that customer data is kept secure and confidential. At the same time, they need to provide a smooth UX to customers who are increasingly accustomed to the ease and convenience of digital services.
To overcome these issues, investment is needed. The ID verification industry must develop a comprehensive strategy incorporating advanced technology, security measures, and user-friendly design. Collaboration across industries and stakeholders will be crucial to developing standardized solutions that are interoperable across platforms and frameworks.
Decentralized IDs have the potential to improve the user experience and make identity verification more secure and efficient. They offer seamless interaction, scalability, and interoperational ease, facilitating the use of identities across different platforms and services. As more businesses and industries embrace these new technologies, we can expect to see more widespread adoption and innovation in this space, making the future of identity verification UX look even more promising.
About the author
Nir Stern isVP product management at AU10TIX.
DISCLAIMER: Biometric Update’s Industry Insights are submitted content. The views expressed in this post are that of the author, and don’t necessarily reflect the views of Biometric Update.