Identity verification is a constantly evolving technology, adapting to the needs of different markets around the world. Here we look at the 5 big trends changing the industry this year.
Patrick Johnson, July 23rd, 2020
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These days our online lives are wholly interwoven with our ‘normal’ lives and one is hard to distinguish from the other.
The digitalization of the world over the past two decades has been both fascinating and slightly breathtaking at the same time. What was once ‘e-commerce’ is now simply referred to as ‘shopping’, while ‘online-banking’ is now just ‘banking’. Face-to-face interaction is no longer required for life to carry on as normal – the coronavirus pandemic is evidence of this, with most facets of life continuing as before despite the fact we have all been behind closed doors.
While the digital world offers many advantages and opportunities, one part of life that has become more complex is identity verification. You used to walk into a bank, show an ID and that would be the end of it. This has now evolved so that online services like marketplaces, social media platforms, gaming, fintech, online reviews and cryptocurrencies constantly need to find new and innovative ways to verify their customers.
This is why the identity verification industry has emerged so strongly in recent years and why it is an inescapable part of our digital world. The identity verification market is expected to grow to be worth an estimated 12.8 billion USD by 2024.
It is predicted that 2020 is going to see some major changes in the industry and the next few years are likely to see some serious evolution. For example, the use of artificial intelligence (AI) and near-field communication (NFI) technology is going to be an essential part of digital identity verification in the future.
So, what are the five trends in identity verification we expect to see in 2020 and beyond?
At its essence, biometric identity technology allows organisations to authenticate their users through things like geolocation, fingerprints, iris scan, face recognition, and other biometrics that are unique to each person. Every new iteration of biometric technology is becoming more powerful and thus it is becoming increasingly prevalent.
This is why artificial intelligence (AI) technology is set to be a big trend of the next few months as algorithms are used to scan specific biometric data of faces which results in secure authentication.
The use of AI means that not only can disruptive factors such as blurred images be permanently eliminated, but the presence of security features on ID cards such as holograms can be verified. This results in dependable and impartial digital identification.
Both consumers and organizations are becoming more security conscious and this is subsequently driving a demand for more identity-verification tools. Indeed a recent study, found that forty-four percent of American consumers ranked ID theft and banking fraud as their top concern.
2020 seems to be the ‘year of change’ where we have gone from comprehensive online verification being unusual, to being expected and even insisted upon. This means that organisations are now scrambling to implement and integrate robust security systems using the latest technology to prevent fraudsters and satisfy customer demand.
It doesn’t take an industry expert to recognise that the world has gone mobile. However, this is no transient trend and 2020 shows there is now no turning back. Among other factors, coronavirus especially has meant that we are demanding more from our mobile devices and any delays in service are not acceptable.
According to Statista, 52% of global internet traffic is now mobile meaning that mobile devices (including tablets) are now the primary means of accessing the internet for users.
The implications of this for digital ID verification are profound. As consumers have gravitated towards mobile devices, fraud on these devices has also risen. Businesses are increasingly needing to consider the threats caused by mobile malware that can capture personal information and intercept text messages. This means that they simultaneously need to find ways to protect consumer data while creating a positive customer experience.
Near-field communication (NFC) is a set of protocols that allows communication between two electronic devices over a physical distance of 4 cm (1 1⁄2 in) or less. NFC is used for commerce, social networking, banking, gaming and it will now be used more and more for digital identity verification.
Just last year Veriff launched a near-field communication (NFC) verification tool. This innovative technology enables companies to validate ePassports with both iOS and Android devices.
This demand is looking like a growing trend in 2020 and beyond. According to forecasts from Technavio, the global market for ePassports will grow by 21 percent CAGR to $23.93 billion in 2023.
Reading the data directly from an ePassport chip provides extremely high security and has the added advantage of being able to verify whether a fraudster has altered the document. Given that most passports are already equipped with this chip it takes online verification to new heights, and even more so when you consider that similar chips are being added to a wide variety of ID documents across the globe.
One of the biggest impacts of COVID-19 has undoubtedly been the increased adoption of online services such as health data, financial data, authentication, security and, of course, video conferencing.
All of these services create a higher demand for online identity verification, and alongside this, the need for more contactless technology as well. It has created an environment where businesses don’t just need to fight fraud, but they also need to help fight the spread of coronavirus as well. This is why verification solutions are so vital as they need to help organisations authenticate identities without the need for any direct contact.
As our CEO, Kaarel Kotkas told TechCrunch in March: “Coronavirus does present new use-cases and needs for remote ID verifications. For example, we have been contacted by universities who are looking for remote examination options, but also large tech companies for account recovery and credentials reset to support remote work”
“When looking at the last 2 weeks when coronavirus has really escalated in Europe and the US, it has triggered a lot of integrations connected to coronavirus like e-notaries, digital healthcare, and others.”
Veriff has been awarded certification against the ISO/IEC 27001:2013 standard
Former marketing leader at Qualtrics joins Veriff’s executive team as CMO to expand strategic marketing initiatives across the globe.
The actual process of monitoring transactions depends on the services your business provides. However, generally speaking, in order to monitor financial transactions, a company will create a rules-based system that’s based on their needs.