Why banks must embrace digital identity to stay relevant and secure
Identity theft and online fraud are becoming increasingly prevalent in today's digital age, affecting and causing concern to both individuals and businesses. As a result, the need for secure digital identity verification and management has become more important than ever.
A recent report from Mobey Forum suggests that banks must take action to become major players in the evolving digital identity space. With their position as custodians of personal data, banks have a unique opportunity to leverage their infrastructure, resources, and customer trust to offer value-added digital identity wallets and become brokers of trust in the digital economy.
Banks in the Nordics and Canada have already demonstrated high customer engagement in their respective BankID and Verified.Me systems, indicating the potential success of digital identity wallets for banks. These wallets can provide a solution that meets customers' needs, removes identity-related pain points, and provides banks with an opportunity to create competitive advantage and improve brand loyalty.
To remain relevant in their customers' lives and mitigate the risk of disintermediation by market disruptors, it is crucial for banks to recognize the value of embedding digital identity in their platforms. By offering digital identity wallets, banks can provide a more convenient and secure way for customers to manage their identity, while also creating a new revenue stream.
While banks do not necessarily need to fully provision a wallet for meaningful participation, they can create the infrastructure that enables issuance and acceptance of verifiable credentials. This allows banks to stake a claim along the value chain according to their own business priorities.
Guidance on how banks can get started with digital identity wallets is also important, including suggestions for identifying business priorities, selecting the right technology partners, and establishing key performance indicators to measure the success of the implementation.
Banking institutions have a unique opportunity to become brokers of trust in the digital economy by embedding digital identity in their platforms. By taking action now, banks can establish themselves as major players in the evolving digital identity space, create competitive advantage, and improve brand loyalty.
Banks looking to offer digital secure digital experiences can partner with 9Spokes, an ISO 27001-certified provider. 9Spokes offers a cloud-based platform that allows banks to bring together various data sources and APIs into a single, secure dashboard. By partnering with 9Spokes, banks can leverage their expertise in data security and privacy to ensure that their digital business banking experience meets the highest standards for protecting customer data.
9Spokes' technology can also help banks manage the complex data flows involved in digital identity verification and management, ensuring a seamless and secure user experience. 9Spokes unlocks tools that make the financial institution "the center" of their business customers’ daily financial lives.
Finextra – https://www.finextra.com/newsarticle/41712/banks-must-act-now-to-embed-themselves-in-the-digital-identity-market?utm_medium=dailynewsletter&utm_source=2023-2-2&member=142929
Mobey Forum report – https://mobeyforum.org/the-rise-of-digital-identity-wallets-will-banks-be-left-behind/
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