Adoption Of Digital Identity Innovation Objective
Quickly and easily identifying consumers online is critical for any entity conducting business on virtual channels, especially financial institutions (FIs), government entities and merchants. Determining the identities of their users with the necessary speed and security is becoming more and more difficult in a world where digital fraud is an increasing concern. This concern has prompted online entities to reexamine how they are currently authenticating online customers — and what emerging tools could help strengthen that process.
Interest in government-supported digital identities such as digital driver’s licenses that consumers can use to verify who they are across various virtual channels is therefore rising, with countries including Malaysia and Singapore taking steps to create such tools for more robust online identification.
Digital Identity In Malaysia
Malaysia’s government is one of many seeking to build out more robust digital profiles of its residents. Government officials recently announced they would be introducing digital identity tools that would help to authenticate users when accessing services online or when making online payments.
The announcement stated that these tools will be connected to the country’s MyKad identification cards — the traditional form of identification issued by the National Registration Department of Malaysia (NRD) — working in tandem to better verify users’ digital identities. Pairing these two identification tools together will help to strengthen authentication and reduce digital identity theft.
Malaysia aims to officially roll out these new digital identification tools by 2024.
Digital Identities verification for travel industry
Correctly determining passenger identities has always been crucial for the air travel industry. Rising concerns regarding the impact of the pandemic upon digital security — as well as consumers’ growing familiarity with digital tools and channels — are pushing entities within this industry to rethink their current verification processes, however. Entities such as the Transportation Security Administration (TSA) are moving toward adopting government-supported digital identities such as mobile driver’s licenses (mDLs), explained Jason Lim, the agency’s identity management capability manager.
Why Digital Identities Are Gaining Popularity Worldwide
There are now more than 4.6 billion individuals accessing the internet globally, banking, shopping and conducting other business routinely across digital channels. Swiftly and accurately identifying all of these users is critically important for the banks, businesses and other entities offering their services online. Still, traditional forms of identification that rely on static information — such as passwords or PINs — can often fall short in a virtual environment.
This has led to a jump in interest in government-supported digital identities, potentially adding more security and swiftness to online identification processes.