How will Digital Security and Identity Verification shape in 2017 (infographic)?

One of the most important topics of 2017 for banks is digital account opening for new to bank customers. Many of them introduced their solution to onboard new to bank customers without sending them to the bank branches however, these solutions are not “truely digital”!

Regulations or lack of security can be counted as the most common barriers in front of the banks to make end-to-end digital onbaording processes possible, however, as of 2017, this problem can be tackled with the help of various vendors in the market.

Jumio is one of them. Personally, I like the way they are handling this problem and they are doing promising work in this area. They recently released an infographic related to Digital Security and Identity Verification Trends which shows interesting information related to this subject from the industry perspective.

Jumio is starting with a quotation by Avivah Litan from Gartner, which was released in American Banker: “…identity proofing is the biggest fraud problem out there. Fraud has become an identity problem.”

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Actually this is so true in the digital age. Fraud became an identity problem with the usage of digital. So to reduce the risks in this area, Jumio grouped the trends under 4 areas:

1. Multifactor Authentication Takes the Biometric Twist: We have been using 2 factor authentication for many years in the banks now, however, today, the second factor is not accepted as a “true 2nd fsactor” anymore. Out of band and even biometrics are considered as the 2nd factor in today’s world. Based on securityintellegence.com stats, 600M devices will support biometrics as of 2021. Jumio is highlighting this in the infographic and mentioning that biometrics are becoming more important in this area.
2. Know Your Customer (KYC) Compliance Gets Digital: The world is going paperless. Evrything is happening as digital, so the know your customer (KYC) processes, as well. Jumio mentions that 67% of compliance officers are expecting a change in their existing processes by going digital starting from 2017. Devices and tools are currently helping to kick start this change, so we will see many banks doing this in 2017.
3. Trust Moves to Center Stage in the Sharing Economy: For the past few years, we have been discussing the power of new age companies which makes billions of dollars without owning anything related to what they sell or facilitate. Facebook, Airbnb, Uber are the examples which we have been using and talking about in this space. People are trusting them and other people who use them as well. Information or data is digital, so according to Jumio, “Trust will be defined by what technology can tell us about that person — who they really are- not who they “say” they are online. So document check + Face2Face Check + digital identity verification will be satisfying this trust need.
4. Technology expends the meaning of Identity Verification: Through the collected papers, organizations are limited to basic checks, which are not expendable anymore. However as mentioned above, data is digital and people are leaving foot prints on the digital world which is accessible and opening different ways of identification opportunities.

Take a look at Jumio’s infographic below, it is something cool to know if you are interested in digital identification processes.