What is digital identity?
Digital identity refers to the representation of an individual's characteristics, credentials, and attributes used for online authentication and identification. In other words, the digital information that can be used to identify an individual. Consumers use digital identities to make online purchases, access online services, or for an employee ID.
Beyond identifying a human, digital identities also include machine identities, such as software applications or endpoints like a consumer’s mobile phone. In addition, cloud identities are also a type of digital identity used in managing access to cloud resources.
Digital identity refers to the representation of an individual's characteristics, credentials, and attributes used for online authentication and identification. In other words, the digital information that can be used to identify an individual. Consumers use digital identities to make online purchases, access online services, or for an employee ID.
Beyond identifying a human, digital identities also include machine identities, such as software applications or endpoints like a consumer’s mobile phone. In addition, cloud identities are also a type of digital identity used in managing access to cloud resources.
What is digital identity verification?
Digital identity verification is a way for banks and credit unions to confirm the identity of their customers when they transact online or open a new account or service. This process validates that the person is who they say they are through measures like document verification, biometrics or one-time passcodes.
Why is digital identity security important?
Since digital identities contain a lot of personally identifying information (PII), it’s essential that companies that work with or store this data do so securely to prevent cyberattacks such as identity theft or data breaches.
In banking, a customer's digital ID grants them access to their bank accounts. As a result, digital identity in banking relies on strong authentication solutions that can differentiate between customers and fraudsters. For financial institutions, implementing digital identity verification tools also helps them align with data protection compliance regulations. Another benefit of digital identities is that they build trust with banking customers by ensuring they can easily verify their identity, making their transactions more secure.
The impact of legacy technology in digital identity
Balancing security and convenience is a common challenge for many banks when it comes to authenticating their customers. Legacy technology, in particular, can add another hurdle to implementing modern security measures that don’t interrupt digital banking transactions.
Learn about the latest thinking and developments concerning digital identity assurance in banking in this webinar recording:
Digital identity verification is a way for banks and credit unions to confirm the identity of their customers when they transact online or open a new account or service. This process validates that the person is who they say they are through measures like document verification, biometrics or one-time passcodes.
Why is digital identity security important?
Since digital identities contain a lot of personally identifying information (PII), it’s essential that companies that work with or store this data do so securely to prevent cyberattacks such as identity theft or data breaches.
In banking, a customer's digital ID grants them access to their bank accounts. As a result, digital identity in banking relies on strong authentication solutions that can differentiate between customers and fraudsters. For financial institutions, implementing digital identity verification tools also helps them align with data protection compliance regulations. Another benefit of digital identities is that they build trust with banking customers by ensuring they can easily verify their identity, making their transactions more secure.
The impact of legacy technology in digital identity
Balancing security and convenience is a common challenge for many banks when it comes to authenticating their customers. Legacy technology, in particular, can add another hurdle to implementing modern security measures that don’t interrupt digital banking transactions.
Learn about the latest thinking and developments concerning digital identity assurance in banking in this webinar recording:
Example:
A customer wants to open another bank account via their mobile banking app. Their bank requires them to first prove their identity by inputting their digital identity details, which may entail authentication via biometrics or a username and password. Once they’ve verified that they are who they say they are, they are able to open the new account via their app.
Explore further:
Keywords:
Digital identity | Authentication solutions | Legacy technology
A customer wants to open another bank account via their mobile banking app. Their bank requires them to first prove their identity by inputting their digital identity details, which may entail authentication via biometrics or a username and password. Once they’ve verified that they are who they say they are, they are able to open the new account via their app.
Explore further:
- Read: Legacy authentication is no match for today's digital banking fraud schemes.
- Blog: Muscling up on strong authentication: Best practices.
- Webinar: What digital identity is and why it matters.
Keywords:
Digital identity | Authentication solutions | Legacy technology
