Identity verification has progressed drastically with the infusion of technology over a period of time. Currently, identity verification depends on physical and digital proof managed by a central authority which includes verification of valid documents like passport, driver’s license, OTP etc. However, the processes and identity parameters vary from country to country making it extremely difficult to standardise the verification process. Building an interoperable digital identity, utilising diverse data sources based on collaboration between data owners spread across the businesses will unlock a gamut of business opportunities across the value chain.
Collaboration is one of the key pillars in the creation of a decentralised and credible Digital ID. A digital platform to harvest data from multiple sources and adding multiple layers of intelligence would enable the creation of a real time frictionless digital identity that can be electronically accessed to solve numerous challenges which can be categorised into any of the following categories
1) Fraud Prevention & Management- Real time Digital ID can help in reducing Identity frauds like Account Take Over, Data Manipulation, Synthetic ID etc. by corelating the information provided by the end user with diverse data sources
2) Identity Coverage – Formal Identity built on Government monitored institutions are hindered by a lack of coverage in many economies due to various systemic and political factors. Digital identity built using multiple flavours of alternate data can solve the missing piece in jigsaw puzzle of identity verification for various digital identity starved economies
3) Identity Verification – A credible, friction-less, secure and real time Digital ID can be used by various services providers for authentication and verification of various stakeholders thereby reducing slack in the process and enhancing operational efficiency of businesses
Digital Identity built on top of diverse and credible data sources can be efficiently leveraged to enhance experience and check fraudsters in a plethora of industries and use cases including;
1) Financial Services – Perform a quick due diligence of the applicant to verify the identity before opening an account, issue a loan or a do a payment
2) Digital Services – Verify the identity of the user when registering or logging to prevent the fraudsters getting access to the services
3) Ecommerce – Build digital trust in shared economies and market places by understanding the risk quotient and profile of the stakeholders.
Collaboration, Co-operation and Coordination are the tenets on which a Universal Digital Identity should be built. A universal Digital identity cannot be created by a technology, industry or a Government. It requires multiple entities to come together, envision the possibilities and take up the challenge of stitching a unique identity based on multiple attributes for an individual
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Keerthi Ram is a Product Manager with close to 6 years of experience in Product Management, Business Consulting and Digital Transformation in domains like Retail, CPG and telecom. Keerthi holds a management degree from KJ Somaiya Institute Of Management Studies and Research, Mumbai specialising in International Business and a bachelor’s degree in Computer Science.